The Treasury Dept. said on Wednesday it received more than 100 unique applications from potential asset fund managers interested in forming public-private investment (PPIP) funds to buy toxic securities from banks.
The Treasury said in a statement that a variety of institutions applied by the April 24 deadline, including traditional fixed-income, real estate and alternative asset managers.
From Treasury Dept: “We are pleased to see a number of creative partnership proposals among the applications we are currently evaluating,” Treasury said.
Treasury intends to inform at least five applicants of their preliminary qualification around May 15, 2009. Once a fund receives preliminary qualification, it can begin raising the expected minimum of $500 million in private capital that will serve as the investment that will be matched with taxpayer funds.
Treasury said it anticipates opening the program to smaller fund managers in the future, which may result in a lower minimum private capital raising requirement.