Treasury Extends PPIP Application Deadline

Fund managers seeking to run and raise capital for the Public-Private Investment Program will have an extra two weeks to file their applications with the Treasury Department. Treasury said it is extending the deadline from April 10 to April 24 to increase small business participation in the Legacy Securities program. Prospective fund managers are being encouraged to partner with small businesses, including firms owned by veterans, minorities and women. "There are several ways smaller firms can partner with fund managers including as an asset manager, an equity partner or a fundraising partners," Treasury said. Others can provide services, such as trade execution or valuation. Originally, Treasury wanted to select only five managers in the first round. But that may be changing also. "More than five pre-qualified fund managers may be selected depending on the number of applications deemed to be qualified," Treasury said. Successful applicants will be notified by May 15. The Public-Private Investment Program is designed to purchase bad residential and commercial mortgage-backed securities from banks and other financial institutions. The goal is to create a market for these securities and clean up bank balance sheets. Fund managers are expected to have a demonstrated capacity to raise $500 million of private capital and a minimum of $10 billion of eligible MBS under management.