Some 100 firms applied for the role. The chosen nine are:Alliance Bernstein, with sub-advisers Greenfield Partners andRialto Capital Management; Angelo Gordon and GE Capital RealEstate, which are partnering; BlackRock; Invesco; Marathon AssetManagement; Oaktree Capital Management; RLJ Western AssetManagement; Trust Company of the West; and Wellington ManagementCo.

With these selections in place, the market will finally get asense of one of the program's missing pieces: its eventualfinancial capacity. The nine fund managers have three months toraise $500 million in capital each from private investors. Treasuryis matching that equity as well as providing debt financing up to100% of the total equity raised. The fund managers have the optionof raising more than $500 million, but there is no assurance thatTreasury will match amount over that threshold.

Even before the fund-raising begins, however, it is clear thatPPIP will not have the same appetite as its original unveilingsuggested. Now the plan is expected to buy as much as $40 billionin assets; original projections suggested it would have to take onas much as $1 trillion. Treasury will invest up to $30 billion inthe program--an amount much smaller than the $100 billion the Obamaadministration initially envisaged.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.