NORWALK, CT-GE Capital Real Estate, based here, and New York City-based Angelo, Gordon & Co. have closed on a $5-billion Legacy Securities Public-Private Investment Fund. The fund was launched in October 2009.
With total commitments of nearly $1.25 billion from investors and an additional $3.7 billion in matching capital and leverage from the US Treasury Department, the fund has approximately $5 billion to invest in eligible RMBS and CMBS. GE Capital and Angelo, Gordon were selected last year as a fund manager to participate in the Obama administration’s Legacy Securities Public-Private Investment Program.
A spokesman for GE Capital tells GlobeSt.com that SEC regulations prohibit divulging specifics on the fund’s investment plans to a general audience. He adds, however, that the fund will be geared strictly to purchasing legacy securities through PPIP rather than new issues.
“Raising a fund of this size in the current economic environment is a significant achievement, and in line with our strategy of launching an investment management business,” says Ron Pressman, president and CEO of GE Capital Real Estate, in a release.
Last month, the Treasury said all eight funds in the PPIP program had posted a profit in the first quarter of 2010. Leading the way was GE Capital and Angelo Gordon’s AG GECC PPIF Master Fund LP, which had earned a 20.6% return since its establishment in late '09.
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