Public-Private Investment Partnership Liquidates; 18.3% Internal Rate Of Return To Treasury

NEW YORK, April 3, 2012 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ) today announced it has returned substantially all of its proceeds, at a profit, from its Invesco Mortgage Recovery Fund (Public-Private Investment Partnership or "PPIP") jointly owned by the U.S. Department of the Treasury.  Treasury will receive $221.2 million (including $3.4 million in warrant proceeds), in addition to the previously distributed $497.9 million, for a total of $719.1 million; an internal rate of return of 18.3% since the Fund's inception in October, 2009.  In March, the Fund also repaid, with interest, the last of the $1.2 billion in loans that Treasury funded over the life of the Fund. The Fund was managed by a joint venture between WL Ross & Co. and Invesco Fixed Income.

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"The success of this PPIP fund proves that government and private sector professional investors can collaborate successfully," said Wilbur Ross, Chairman of the Investment Committee of the Fund and chairman and CEO of WL Ross & Co. LLC. "The PPIP program has resuscitated the private label mortgage-backed securities market and, at least in our case, resulted in a handsome profit to Treasury.  We are proud to have participated in it." 

"As managers of the mortgage-backed securities eligible for PPIP, our overriding goal was to maximize the return for the Treasury and our other investors.  That goal dictated the timing of the sale, and we believe that is what we achieved," said Rich King, Co-Head of US Taxable Fixed Income and Global High Income, Invesco Fixed Income, a co-manager of the Fund.



Treasury announced the Public-Private Investment Program in March 2009 as part of the Obama Administration's broader Financial Stability Plan -- a comprehensive framework to stabilize the financial system, including addressing the challenges facing the market for legacy real estate-related assets in the wake of the 2008 financial crisis.  PPIP was designed, in part, to support market functioning and facilitate price discovery in the non-agency residential mortgage- backed securities and commercial mortgage-backed securities markets, helping banks and other financial institutions re-deploy capital and extend new credit to households and businesses. The Invesco Mortgage Recovery Fund was one of eight active Public-Private Investment Funds in the program.  Under the program, the Fund held its initial closing in September 2009 and ultimately deployed $2.3 billion, including $581 million in equity capital from Treasury, $581 million in equity capital from private investors, and $1.2 billion of debt capital from Treasury.

Invesco Mortgage Recovery Fund will continue to invest directly in residential and commercial mortgage loans as well as structured securities and other real estate related opportunities on an opportunistic basis without Treasury funding.

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