Three more investment firms have reportedly raised enough capital to participate in the joint effort with the U.S. government to buy toxic assets from banks. The U.S. Treasury Department is expected to announce on Monday that AllianceBernstein Holding LP (AB), BlackRock Inc. (BLK) and Wellington Management Co. together raised $1.94 billion, which would qualify these firms for federal funds under the Public Private Investment Program, or PPIP.
The government will match the funds and provide debt financing, which will enable the three firms to have a combined purchasing power of $7.74 billion. The program is aimed at enabling banks to resume normal lending, after getting rid of bad loans.
Last week, Invesco Ltd. (IVZ) and TCW Group Inc. (TSI) had announced initial closings of their funds. The funds can have two more rounds of investment in the next six months, which will be eligible for matching equity and debt from the government.
The remaining partnerships are expected to announce closings this month.
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