Mortgage insurer PMI Group said Wednesday that Blackstone Group LP has made an investment of an undisclosed size in the company.

The New York investment firm has agreed to provide PMI with a loan for working capital needs, in connection with the purchase of a significant equity stake. Blackstone now has the rights to participate in future equity offerings and will nominate a director to the board.

PMI will use the money to pursue its investment strategy.

PMI, a residential mortgage insurance provider, sought protection from its creditors in the U.S. Bankruptcy Court in 2011, listing assets of $225 million and debts of more than $736 million. One of the country's largest private-sector mortgage insurers, PMI had seen its business deteriorate along with the U.S. housing market.

It filed for Chapter 11 bankruptcy protection after an Arizona judge rejected its bid to overturn the seizure of its mortgage-insurance unit by state regulators.

Write to Angela Chen at angela.chen@wsj.com

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(END) Dow Jones Newswires

September 02, 2015 18:35 ET (22:35 GMT)

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