On July 8, 2009, the Treasury announced further details regarding its Legacy Securities Public-Private Investment Program. This program is aimed at relieving financial institutions of illiquid assets that continue to hamper the flow of credit markets.
Under this program, the Treasury will invest up to $30 billion of equity and debt side-by-side with private investors through public-private investment partnerships (PPIPs). The PPIPs will be managed by select asset managers and will invest in eligible assets. The eligible assets will initially include certain commercial mortgage-backed securities and non-agency residential mortgage backed-securities issued prior to 2009.
With a pool of over 100 applicants, the Treasury named the following nine firms as initial asset managers of the PPIPs:
· Alliance Bernstein, LP and its subadvisors Greenfield
Partners, LLC and Rialto Capital Management, LLC
· Angelo, Gordon & Co., L.P. and GE Capital Real Estate
· Blackrock, Inc.
· Invesco Ltd.
· Marathon Asset Management, L.P.
· Oaktree Capital Management, L.P.
· RLJ Western Asset Management, L.P.
· The TCW Group, Inc.
· Wellington Management Company, LLP
For a complete term sheet relating to the legacy securities PPIPs, please visit http://www.financialstability.gov/docs/S-PPIP_LOI_Term-Sheets.pdf.
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