X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.