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WASHINGTON, DC-Three more investment funds–BlackRock, Wellington Management Co. and AllianceBernstein LP–including its sub-advisers Greenfield Partners and Rialto Capital Management–have raised close to $2 billion to be invested in the government’s program to retire toxic debt. This news comes days after the Treasury Department announced that the first two investment funds raised the necessary $500 million to participate in the program.

All together, BlackRock, Wellington Management and AllianceBernstein raised commitments of $1.94 billion. Treasury is now matching that amount with $1.94 billion, as well as providing debt financing. The total purchasing power will be $7.74 billion. Under the program, each of the asset managers were expected to raise a minimum of $500 million, which would be matched by equity and debt financing.

Last week Invesco Ltc and TCW Group closed their own commitments for a collective total of $1.13 billion. With the Treasury match, the duo will have $2.26 billion in equity, for a total of $4.52 billion in debt and equity capital commitments. All together this activity translates into $12.27 billion in purchasing power for so-called legacy assets–the polite term for under water or toxic assets now–in the private sector.

More commitments are expected from the other–nine in total–asset managers selected to participate in the program. With PPIP clearly underway now the next big question is whether–and at what price–holders of these assets will be willing to sell them.

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