The asset manager TCW Group Inc. has begun the liquidation process of its $356 million in Public-Private Investment Program funds, the Treasury Department said Wednesday.
TCW announced on Monday that it is withdrawing from the toxic asset program. The company will now begin to liquidate its government funds by buying toxic assets and then repaying the government. The Treasury had projected to initially invest about $3.3 billion in the TCW fund, but the agency said Wednesday that it had instead invested only $358 million by the time TCW announced its withdrawal from the program.
As part of the PPIP, TCW must split with the government any profit it makes from the toxic asset sale.
The TCW PPIP fund was frozen in December after the departure of the company's chief investment officer and other members of its investment team.
"Given that we are at a very early stage of investment in this particular product, and in light of the recent changes in the portfolio management team, we believe this action is appropriate and in-line with TCW's commitment to act in the best interests of our clients," Marc I. Stern, TCW's chief executive, said in a release on Monday.