RLJ Western Asset Management Liquidates Public Private Investment
Partnership At A 23.9% Internal Rate Of Return For Treasury
PASADENA, Calif., Nov. 20, 2012 /PRNewswire/ -- RLJ Western
Asset Management, LP today announced that it has returned
substantially all assets of the RLJ Western Asset Public/Private
Master Fund (the "RLJ/WA PPIP"). The RLJ/WA PPIP was
jointly owned by the U.S. Department of the Treasury ("Treasury")
and private investors. Treasury received $416.8 million of investment gains in addition to
the return of $620.6 million in
committed capital. These profits represent a 23.9% internal
rate of return on Treasury's equity investment, net of fees and
expenses, since the fund's inception in November 2009 and a 1.67x net multiple on
committed capital. Treasury received $10.5 million in proceeds from warrants for total
proceeds from the RLJ/WA PPIP of $1.05
billion. The RLJ/WA PPIP also repaid $1.24 billion in loans with interest to
Treasury. The RLJ/WA PPIP was managed by a joint venture
between the RLJ Companies and Western Asset Management Company as
part of the Treasury's Legacy Securities Public-Private Investment
Program.
"The RLJ Companies and Western Asset are extremely pleased to
have participated as a manager in the Public-Private Investment
Program, helping to provide liquidity for legacy mortgage assets
and generating attractive returns for our clients and United States taxpayers," said Paul Jablansky, Head of Structured Products, for
Western Asset Management Company.
The Legacy Securities Public-Private Investment Program was
conceived as a distressed asset investment opportunity with the
goal of supporting functioning non-agency mortgage-backed
securities markets and allowing banks to redeploy capital to
businesses and consumers. Treasury announced the program in
March 2009 as part of the Obama
Administration's broader Financial Stability Plan. The RLJ Western
Asset joint venture was one of the original nine fund managers
pre-qualified to raise private investment capital and administer
investing for the Legacy Securities Public-Private Investment
Program.
About Western Asset
Western Asset, a unit of Legg
Mason, Inc. (NYSE: LM) is one of the world's premier
fixed-income managers. With offices in Pasadena, New
York, London, Tokyo, Singapore, Hong
Kong, Melbourne and
Sao Paulo, Western Asset offers
institutional and retail clients a full range of fixed-income
products. By devoting all of its resources to fixed-income, Western
Asset is able to provide a full commitment to its clients in every
area of the firm. Western Asset's long performance track record and
global presence has them positioned to continue their commitment to
excellence in fixed-income investment management and client
service. As of September 30, 2012,
Western Asset had $459 billion in
assets under management. For more information visit
www.westernasset.com.
About The RLJ Companies
The RLJ Companies, founded by Robert L.
Johnson, is an innovative business network that provides
strategic investments in a diverse portfolio of companies. Within
The RLJ Companies portfolio, Johnson owns or holds interests in
businesses operating in hotel real estate investment trust; private
equity; financial services; asset management; insurance services;
automobile dealerships; sports and entertainment; and video lottery
terminal (VLT) gaming. The RLJ Companies is headquartered in
Bethesda, MD, with affiliate
operations in Charlotte, NC;
Little Rock, AR; Los Angeles, CA; San
Juan, PR; and Monrovia,
Liberia. Prior to founding The RLJ Companies, Johnson was
founder and chairman of Black Entertainment Television (BET). For
more information visit www.rljcompanies.com.
SOURCE Legg Mason, Inc.