Marathon Asset Management has initially closed an investment fund together with minority-owned investment bank Blaylock Robert Van that will buy troubled real estate loans under the Treasury Department's Public-Private Investment Program.
The Treasury Department said in a news release it expects an initial closing on the remaining PPIP funds soon, rounding out a total Treasury equity and debt investment of $30 billion plus another $10 billion of private investor capital. Meg Reilly, Treasury spokeswoman couldn't learn by press time how much is in the Marathon fund.
Marathon expects to have two closes with a final fund closing within six months, said Justin Dini, Marathon spokesman. (Treasury requires final fund closings within six months of the initial close.) Mr. Dini said he could not comment beyond Treasury's announcement.
So far this year, $10.13 billion of PPIP transactions closed with funds, including $5.07 billion in private capital and an equal amount of matching equity capital plus another $10.13 billion in loans provided by Treasury.
Marathon was named in July by Treasury as one of nine investment firms or groups prequalified as investment managers to buy loans including mortgage-backed securities and non-agency residential mortgage-backed securities.