US - The New York State Common Retirement Fund has invested in the US government's Public-Private Investment Program (PPIP) via third-party real estate fund managers.

The pension fund has committed $100m (€80m) to the Invesco Mortgage Recovery Feeder Fund and $50m to the Oaktree PPIP Private Fund.

Both vehicles were set up in conjunction with the US government's PPIP, which is designed to provide liquidity for so-called toxic mortgages on the balance sheets of financial institutions.

Invesco and Oaktree are two of a number of investment firms selected by the US Treasury to provide funds for PPIP.

The pension fund has invested with Oaktree in the past, but the investment with Invesco represents a new relationship for the institution.

Invesco's fixed income team is working in conjunction with WL Ross, the distressed investment affiliate of Invesco, on the fund.

The fund manager has also employed the help of a number of organisations for the PPIP fund: the LeFrak Organization; Assured Guaranty; American Home Mortgage Servicing; Muriel Siebert and Co.; Williams Capital Group, and Jackson Securities.

Topics