Invesco and its WL Ross affiliate announced that they are prepared to commit $1 billion to the Public-Private Investment Program (PPIP).
In order to prepare for the Public-Private Investment Program (PPIP), Invesco Ltd. (NYSE:IVZ) and its WL Ross affiliate are combining the proven 30-year expertise of Invesco’s 120 person fixed income team, currently managing $159 billion of assets, and the distressed investment skills of WL Ross to uniquely deliver their resources, stability and expertise to the U.S. mortgage investment market. Additionally, the LeFrak Organization, Assured Guaranty Ltd., and American Home Mortgage Servicing Inc. have joined to provide unique insights to the investment team. Furthermore, strategic partnerships have been created with a leading woman-owned securities firm, Muriel Siebert and Co., and with two leading minority-owned firms, investment banking and investment advisory firm Williams Capital Group and the Jackson Securities affiliate of 103-year old Atlanta Life Financial Group.
Martin L. Flanagan, President and CEO of Invesco said, “We strongly believe that the Public-Private Investment Program will help stimulate the mortgage market and provide individual and institutional investors globally with compelling investment opportunities in the Legacy Securities and Legacy Loan programs.” He added, “Our fixed income team has delivered sound investment results across the entire range of fixed income, in particular within the residential and commercial mortgage backed securities markets, and has helped Invesco itself maintain a strong and healthy financial standing throughout the market crisis.”
Wilbur Ross, Chairman of WL Ross & Co. and of Invesco Private Capital added, “We are prepared to invest up to $1 billion in these programs and are delighted that the LeFrak Organization, major property developers and owners, will co-invest with us and that its CEO, Richard LeFrak, will join the supervisory council of the consortium.” In addition, Mr. Ross said, “Our investment team will benefit from the mortgage market knowledge bases and skills of two of our portfolio companies: American Home Mortgage Services, Inc., the largest servicer of subprime mortgages (525,000 loans in all 50 states and $110 billion servicing portfolio) and Assured Guaranty Ltd., a leading monoline insurer with proven risk management of commercial and residential mortgage backed securities.”
Managing the panorama of legacy assets requires a wide range of skills that is demonstrated by the Invesco and WL Ross team. Mr. Flanagan remarked, “It is important that multiple avenues be established for individual and institutional investors to participate in these mortgage investment strategies and we are uniquely positioned with our global experience and product innovation.” In addition, Mr. Flanagan said, “Our efforts will be supplemented by Muriel Siebert and Co., Williams Capital Group, and the Jackson Securities affiliate of the 103-year old Atlanta Life Financial Group, thereby assuring broad participation.”
About WL Ross & Co.:
WL Ross is the distressed investment affiliate of Invesco. Led by renowned investor Wilbur Ross, WL Ross’ 20-person investment team, has accomplished more than $200 billion of workouts around the world over the last 30 years. WL Ross has sponsored and managed more than $8 billion of equity investments in distressed securities and closed a $4 billion distressed private equity fund in 2007.
About Invesco Worldwide Fixed Income:
Invesco’s Worldwide Fixed Income investment team is comprised of 120 investment professionals operating in six cities, across four countries, with approximately $159 billion in assets under management across a broad array of securities. With over 30 years of experience, the teams of dedicated professionals have developed exceptional track records across multiple fixed income sectors and asset classes including structured securities (MBS, ABS, CMBS) and leveraged loan portfolios.
About Invesco Ltd.:
Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.