The PPIFs have recently completed their third and final year in which they can draw capital and make new investments. Thereafter, each PPIF has up to five additional years (which could be extended for an additional two years with Treasury's permission) to manage its portfolio and return the proceeds to the taxpayers and private investors.
In December 2009, The TCW Group, Inc. (TCW) terminated the employment of individuals identified as “Key Persons” under the Limited Partnership Agreement for the UST/TCW Senior Mortgage Securities Fund, L.P. (TCW PPIF). As a result, TCW withdrew from the program and wound up and liquidated its PPIF at a profit to Treasury and the private sector investors in January 2010. TCW repaid all of the approximately $200 million in debt and $156 million in equity capital invested by Treasury in the PPIF. In addition, Treasury received approximately $1 million in warrant proceeds, and $20 million in cumulative realized gains from the TCW PPIF.
In March 2012, Invesco Legacy Securities Master Fund, L.P. (Invesco PPIF) completed the sale of its remaining investments and returned substantially all of the proceeds to Treasury and its private investors. Invesco repaid all of the approximately $1.2 billion in debt and $581 million in equity capital invested by Treasury in the PPIF. In addition, Treasury received approximately $18 million in interest, $3 million in warrant proceeds, and $136 million in cumulative realized gains from the Invesco PPIF.
In October 2012, AllianceBernstein Legacy Securities Master Fund, L.P. (AllianceBernstein PPIF) completed the sale of its remaining investments and returned substantially all of the proceeds to Treasury and its private investors. AllianceBernstein repaid all of the approximately $2.1 billion in debt and $1.1 billion in equity capital invested by Treasury in the PPIF. In addition, Treasury received approximately $58 million in interest, $12 million in warrant proceeds, and $474 million in cumulative realized gains from the AllianceBernstein PPIF.
In November 2012, RLJ Western Asset Management completed the sale of its remaining investments and returned substantially all the proceeds of the RLJ Western Asset Public/Private Master Fund, L.P. (RLJ Western PPIF) to Treasury and its private investors. RLJ Western PPIF repaid approximately $1.2 billion in debt and $621 million in equity capital invested by Treasury in the PPIF. In addition, Treasury received approximately $37 million in interest, $11 million in warrant proceeds and $417 million in cumulative realized gains from the RLJ Western PPIF.
In December 2012, BlackRock, Inc announced that it had returned to investors substantially all of the proceeds, at a profit, from its BlackRock PPIF, L.P. (BlackRock PPIF). The BlackRock PPIF repaid approximately $1.1 billion in debt and $528 million in equity capital invested by Treasury in the PPIF. In addition, Treasury received approximately $34 million in interest, $10 million in warrant proceeds and $389 million of cumulative realized gains from the BlackRock PPIF.
The latest PPIP Quarterly Report includes a summary of PPIP capital activity, portfolio holdings and current pricing, and program and fund performance through September 30, 2012. Treasury has published 12 quarterly reports on PPIP to date and expects to provide additional information as the program continues to mature.