Marathon Raises $500M, Ready for PPIP

Marathon Asset Management LP, after raising $500 million from investors, has been cleared by the Treasury Department to participate in its 'Public-Private Investment Program' to buy toxic mortgage assets. The New York-based Marathon had already been prequalified by Treasury to invest in legacy assets by partnering with the government, but needed to raise the minimum $500 million to participate. On Monday it publicly announced that it had met the capital goal. The asset manager plans to buy subprime ABS, including both performing and subperforming asset classes. It has been actively reviewing and bidding on portfolios over the past year. Now that it has met the federal capital raise minimum, it can partner with Treasury 50-50 on toxic asset purchases and receive government financing.