Federal regulators have picked securities affiliates of two insurers to help the government manage and dispose of real estate assets acquired from troubled financial institutions.
The Treasury Department is including the insurer affiliates on a list of companies that will help it invest up to $30 billion in a Legacy Securities “Public-Private Investment Program.”
Treasury officials say the Legacy Securities PPIP will start by participating in the market for commercial mortgage-backed securities, or CMBS, and non-agency residential mortgage-backed securities, or RMBS.
AllianceBernstein L.P., New York, an affiliate of AXA S.A., Paris, will be one of the companies acting as primary managers. AllianceBernstein will handle that role with help from sub-advisors Greenfield Partners L.L.C. and Rialto Capital Management L.L.C.
AXA is the parent of AXA Equitable Life Insurance Company, New York.
Regulators chose the Jackson Securities L.L.C. subsidiary of Atlanta Life Financial Group Inc., Atlanta, to be one of 10 firms that will fill “partnership roles” designed for small businesses, and for businesses owned by veterans, women and minorities.
Atlanta Life sells group life insurance and has a general agency business. Along with Jackson Securities, it has an asset management arm that manages $1 billion in public equity.
AllianceBernstein and the other primary managers each must invest a minimum of $20 million of its own capital in its “public-private investment fund,” or PPIF.
Each primary manager will have up to 3 months to raise at least $500 million of capital from other private investors.