More than 100 applications have been received from potential fund managers interested in participating in the U.S. government’s plan to purchase toxic assets from troubled banks, the U.S. Treasury Department said Wednesday.

Treasury expects to tell applicants whether they have received preliminary qualification by May 15. Once a fund receives preliminary qualification, it can begin raising the expected minimum of US$500 million in private capital that will serve as the investment that, pending further approval, will be matched with taxpayer funds.

The department notes that it expects to open the program to smaller fund managers in the future, which may result in a lower minimum private capital raising requirement. Currently, it reports that a variety of institutions applied, including traditional fixed income, real estate, and alternative asset managers.

“Successful applicants must demonstrate a capacity to raise private capital and manage funds in a manner consistent with Treasury’s goal of protecting taxpayers. Treasury will also evaluate the applicant’s depth of experience investing in eligible assets,” it says, adding that firms must also be headquartered in the United States.

IE