US names PPIP fund managers

BLACKROCK and Invesco are among nine fund managers named yesterday by the US Treasury to run the public-private partnerships (PPIP) that could buy up as much as $40bn (&pound;25bn) of toxic securities from banks.<br /><br />The Treasury plans to invest up to $30bn into the programme, which will be smaller than the Obama administration initially envisaged because the banking system has begun to recover from a severe financial crisis and is able to raise capital on its own.<br /><br />&ldquo;While the program may be modest in size, we&rsquo;re certainly prepared to expand the resources committed to these programs as conditions evolve,&rdquo; the Treasury said, adding that the selected fund managers have up to 12 weeks to raise at least $500m of capital each from private investors.<br /><br />The Treasury will then match their equity capital and also provide debt financing up to 100 per cent of the total equity in the partnerships.<br /><br />Aside from the above, the funds are: Alliance Bernstein, with sub-advisers Greenfield Partners and Rialto Capital Management, Angelo Gordon with GE Capital Real Estate, Marathon Asset Management, Oaktree Capital Management, RLJ Western Asset Management and the Trust Company of the West and Wellington Management.