The Treasury Department today named AllianceBernstein, Angelo, Gordon & Co. and GE Capital Real Estate; BlackRock; Invesco; Marathon Asset Management; Oaktree Capital Management; RLJ Western Asset Management; TCW Group and Wellington to participate in its Public-Private Investment Program.
AllianceBernstein's subadvisers, Greenfield Partners and Rialto Capital Management, were also selected to run assets in the program. RLJ Western is a joint venture set up by WAMCO and The RLJ Cos., the holding company owned by Black Entertainment Television founder Robert L. Johnson.
PIMCO, which had been expected to be among the firms selected for PPIP, said in a statement today it had withdrawn its application last month “as a result of uncertainties regarding the design and implementation of the program.”
“PIMCO is participating in the (Term Asset-backed Securities Loan Facility) and other programs,” the PIMCO statement said. “We continue to believe that it is important for the public and private sectors to work together to resolve the financial crisis and improve the economic outlook.”
The program aims to deal with mortgage-backed securities that have plagued banks since the beginning of the economic crisis. The managers will run up to a combined $30 billion in equity and debt in the program, according to a Treasury news release.
More than 100 firms applied to participate in the program over the last two months.
The managers each have up to 12 weeks to raise $500 million from private investors for the Public-Private Investment Program, which will be matched by the Treasury. Each chosen firm also will invest a minimum of $20 million of their own capital.
“While utilization of legacy asset programs will depend on how actual economic and financial market conditions evolve, the programs are capable of being quickly expanded if these conditions deteriorate,” according to a joint statement from Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben S. Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair.