AllianceBernstein has completed the final round of capital raising for its Public-Private Investment Fund, exceeding the USD1.1bn capacity originally allocated for the fund when it was launched in 2009.
The capital was raised from a variety of institutional and individual investors globally.
With matching capital plus leverage provided by the US Department of the Treasury, under the US Government’s Legacy Securities Public-Private Investment Program, the fund brings to bear USD4.6bn for investing in distressed legacy non-agency residential mortgage-backed securities and commercial mortgage-backed securities.
Jeffrey Phlegar, chief investment officer and president of AllianceBernstein’s special opportunities and advisory services group, says: "This marks another significant milestone for market participants as risk aversion continues to subside and investors seek to deploy capital into strategies that seek to generate income. PPIP has enabled price discovery and the re-distribution of legacy assets. We have deployed more than 50 percent of the PPIF’s capital, along with financing from Treasury, to acquire eligible investments."
AllianceBernstein was selected by Treasury to be one of nine pre-qualified fund managers under PPIP.