The U.S. Treasury Department announced on April 29 the receipt of more than 100 “unique” applications from potential fund managers interested in participating in the Legacy Securities portion of the Public Private Investment Program (PPIP). A variety of institutions applied, including ”traditional fixed income, real estate, and alternative asset managers.” Under Treasury rules applicable to the PPIP, successful applicants must demonstrate a capacity to raise private capital and manage funds in a manner consistent with the Treasury's goal of protecting taxpayers. The Treasury will also evaluate the applicant's depth of experience investing in eligible assets. Finally, the applicant must be headquartered in the United States.  

The Treasury expects to inform applicants of their preliminary qualification around May 15. Once a fund receives preliminary qualification, it can begin raising the expected minimum of $500 million in private capital that will serve as the investment that, pending further approval, will be matched with taxpayer funds. Treasury anticipates opening the program to smaller fund managers in the future, which may result in a lower minimum private capital raising requirement.  

Since announcing the program details on March 23, the Treasury has encouraged small, veteran, minority and women-owned private asset managers to partner with other private asset managers. On April 6, the Treasury extended the deadline for fund manager applications to provide more time to facilitate these types of partnerships.  

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