The Treasury Department has hired three more investment management firms to advise it on the bailout.
The three firms, AllianceBernstein LP, FSI Group, LLC, and Piedmont Investment Advisors, LLC, were selected from a pool of 200 applicants, each with over $2 billion in assets under management.
According to Treasury, the firms will assist in valuing the assets the government has received under the Troubled Asset Relief Program and advise Treasury on its overall investment policies.
The contracts with the firms were posted on the Treasury website.
According the government's deal with AllianceBernstein, the New York-based firm would receive $50,000 for each of the first 50 financial institutions whose stock and warrants it analyzes, for a total of $2.5 million. It would receive $40,000 for each of the next 50 companies, and $30,000 for every one after that.
So far, 559 companies have received money under the TARP program.
AllianceBernstein also will receive $150,000 for each agent, or submanager, detailed by the Treasury to work under the firm's supervision, with a minimum payment of $1 million for the first six quarters of the contract. In addition, Treasury will pay the firm a $200,000 "data aggregation and reporting" fee.
The contracts with FSI Group and Piedmont include the same structured terms as that for AllianceBernstein, but without payments for submanagers or data aggregation and reporting.
FSI Group is based in Cincinnati. Piedmont has headquarters in Durham, N.C.
The three firms, AllianceBernstein LP, FSI Group, LLC, and Piedmont Investment Advisors, LLC, were selected from a pool of 200 applicants, each with over $2 billion in assets under management.
According to Treasury, the firms will assist in valuing the assets the government has received under the Troubled Asset Relief Program and advise Treasury on its overall investment policies.
The contracts with the firms were posted on the Treasury website.
According the government's deal with AllianceBernstein, the New York-based firm would receive $50,000 for each of the first 50 financial institutions whose stock and warrants it analyzes, for a total of $2.5 million. It would receive $40,000 for each of the next 50 companies, and $30,000 for every one after that.
So far, 559 companies have received money under the TARP program.
AllianceBernstein also will receive $150,000 for each agent, or submanager, detailed by the Treasury to work under the firm's supervision, with a minimum payment of $1 million for the first six quarters of the contract. In addition, Treasury will pay the firm a $200,000 "data aggregation and reporting" fee.
The contracts with FSI Group and Piedmont include the same structured terms as that for AllianceBernstein, but without payments for submanagers or data aggregation and reporting.
FSI Group is based in Cincinnati. Piedmont has headquarters in Durham, N.C.
published April 23, 2009, 0 Comments
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