Marathon wraps up initial close on public-private fund

Marathon Asset Management LP has completed an initial closing of an investment fund established under the Public-Private Investment Program, the Department of the Treasury announced today. Marathon, which manages about $10 billion, operates hedge funds and real estate funds. The company declined to disclose the value of the fund, but firm spokesman Justin Dini said the firm is still raising money, and there will be two additional closings for the PPIP over the next six months. Marathon is partnering with Blaylock Robert Van LLC on the PPIP, Treasury said. Blaylock Robert Van is a full-service, minority-owned investment banking firm. “Following an initial closing, each PPIF has the opportunity to conduct additional closings over the following six months to receive matching Treasury equity and debt financing, with a total Treasury equity and debt investment in all PPIFs equal to $30 billion,” or $40 billion including private investor capital, the Treasury Department said in a release. The funds were authorized under the Treasury's Legacy Securities Public-Private Investment Program. The program is intended to match public financing with private investments to purchase troubled “legacy assets,” including real estate loans held on banks' books, as well as securities backed by loan portfolios. To date, PPIFs have completed initial and subsequent closings on about $5.07 billion of private-sector equity capital, which has been matched 100% by the Treasury, the agency said. The Treasury has also provided $10.13 billion of debt capital, representing $20.26 billion of total purchasing power.