Investment management firm Invesco (IVZ) closed its $1.46bn Mortgage Recovery Fund, primarily with commitments from institutional clients. The offering, which invests in the firm's Public-Private Investment Fund as part of the Public-Private Investment Program (PPIP), gives exposure to mortgage loans and securities. The fund was designed to invest in PPIP-eligible mortgage-backed securities and mortgage-related loans. "The Treasury Department's PPIP initiative of partnering with private investment firms like Invesco reestablished a market for mortgage-related securities in 2009 by providing much-needed stimulus to this distressed market," said Mark Armour, senior managing director and head of worldwide institutional at the firm, in a press statement. The Treasury previously selected Invesco as a pre-qualified fund manager to participate in PPIP, which is divided in two major programs — the securities branch and the loan branch. These programs together aim to clear mortgage-related securities and other toxic assets from banks’ balance sheets. The program provides federal equity matches for privately raised capital. The news of the fund's closing comes after Real estate investment trust (REIT) Invesco Mortgage Capital said last week it expects $0.77 earnings per share in Q110, narrowed from $1.02 per share in the previous quarter. Invesco is planning yet another sale of shares to raise funds to invest in MBS and mortgage loans. Write to Diana Golobay. Disclosure: the author holds no relevant investments.