The US Treasury Department early Monday announced another three closings of Public-Private Investment Funds (PPIFs) under the Legacy Securities Public-Private Investment Program (PPIP). AllianceBernstein, BlackRock and Wellington Management Company raised at least $500m apiece in private equity to qualify for funding, Treasury said. The PPIP is divided in two major programs — the securities branch and the loan branch — which 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 three firms raised a combined $1.94bn which, along with the Treasury's matching equity contribution and $3.87bn of additional debt capital, wield $7.74bn of total purchasing power under the securities side of the PPIP. The Treasury's announcement follows $1.13bn in private equity raised last week by Invesco and The TCW Group, which carry a combined $4.52bn of total purchasing power. All told, the five firms have so far raised enough private equity to manage $12.27bn in purchasing power. "The PPIP continues to grow," said Herb Allison, assistant secretary for financial stability, in a statement. "Private capital is being drawn into the market for legacy securities and taxpayers are being given a chance to share in the profits." Treasury said it expects remaining initial closings for other PPIFs to occur throughout October. Each PPIF will have the opportunity after an initial closing for two additional closings during the following six months to receive matching Treasury equity and debt financing. Treasury will fund equity and debt investments in all PPIFs up to $30bn, which will total $40bn in spending power including private investor capital. The legacy loans side of the PPIP remains busy, as well. Residential Credit Solutions (RCS) won the bidding for the pilot sale of toxic mortgage loan assets through the Legacy Loans Program (LLP) of the PPIP. RCS paid $64.2m for a 50% equity stake in a limited liability company comprising a portfolio of residential mortgage loans with $1.3bn in unpaid principal balance. Write to Diana Golobay.