Today, Treasury announced that three additional fund managers selected to participate in Treasury’s Legacy Securities program had raised the requisite $500 million of private capital in order to obtain the matching debt and equity funds from Treasury to fund their respective Public-Private Investment Funds (PPIFs). The additional "initial closings" are for funds managed by (i) AllianceBernstein, LP and its sub-advisors Greenfield Partners, LLC and Rialto Capital Management, LLC; (ii) BlackRock, Inc.; and (iii) Wellington Management Company, LLP, and come a few days after Treasury announced its first closings on September 30. To date, a total of $12.27 billion has been committed to purchase toxic legacy securities under the PPIF program, with the five fund managers raising in the aggregate approximately $3.07 billion in private equity capital, a match of approximately $3.07 billion in equity capital from Treasury and a further $6.13 billion in guaranteed debt financing from Treasury. Following an initial closing, "each PPIF will have the opportunity for two more closings over the following six months to receive matching Treasury equity and debt financing, with a total Treasury equity and debt investment in all PPIFs equal to $30 billion ($40 billion including private investor capital)."
The three fund managers, along with six others, were selected in July to participate in the PPIF. Treasury expects that the remaining four initial closings for the other PPIFs will occur throughout October.