PPIP managers have raised more than $5 billion of equity as part of the US government’s legacy securities programme, with Marathon Asset Management the latest to hold a first close on its public-private investment fund.
The US Treasury today said in a statement Marathon and partner, the banking firm Blaylock Robert Van, held an initial close on its Public-Private Investment Program (PPIP) fund. According to an unnamed Treasury source cited by Bloomberg, Marathon raised $400 million, below the $500 million minimum required.
To date, eight of the nine selected PPIP managers have raised a total of $5.07 billion of private commitments, which will be matched by a further $5.07 billion of government funding and then doubled with Treasury debt capital to provide $20.26 billion of purchasing power.
The US government unveiled nine pre-selected managers to take part in the legacy securities part of its PPIP plan, including AllianceBernstein, together with Greenfield Partners and Rialto Capital Management; BlackRock; Invesco; Marathon Asset Management; RLJ Companies and Western Asset Management; the TCW Group and Wellington Management Company.
Only Oaktree Capital Management has yet to announce a first close, according to a search of Treasury press releases. Today’s statement said the Treasury expected to announce an initial closing for the remaining public-private investment fund “soon”. Oaktree said it did not comment publicly on its activities.
The government said in July it would give each manager 12 weeks to raise a minimum of $500 million in private equity commitments. That date passed in September, with the government expected to become increasingly flexible owing to the constricted fundraising environment.
PPIP fund managers are targeting institutional investors, but sources have told PERE investor interest in the vehicles is strong. PPIP vehicles can buy CMBS securities that were previously rated AAA prior to 2008.