NORWALK, CT-GE Capital Real Estate, based here, and New York City-based Angelo, Gordon & Co. have closed on a $5-billion Legacy Securities Public-Private Investment Fund. The fund was launched in October 2009.
With total commitments of nearly $1.25 billion from investors and an additional $3.7 billion in matching capital and leverage from the US Treasury Department, the fund has approximately $5 billion to invest in eligible RMBS and CMBS. GE Capital and Angelo, Gordon were selected last year as a fund manager to participate in the Obama administration’s Legacy Securities Public-Private Investment Program.
A spokesman for GE Capital tells GlobeSt.com that SEC regulations prohibit divulging specifics on the fund’s investment plans to a general audience. He adds, however, that the fund will be geared strictly to purchasing legacy securities through PPIP rather than new issues.
“Raising a fund of this size in the current economic environment is a significant achievement, and in line with our strategy of launching an investment management business,” says Ron Pressman, president and CEO of GE Capital Real Estate, in a release.
Last month, the Treasury said all eight funds in the PPIP program had posted a profit in the first quarter of 2010. Leading the way was GE Capital and Angelo Gordon’s AG GECC PPIF Master Fund LP, which had earned a 20.6% return since its establishment in late '09.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
