Funds To Learn They Will Take Part in PPIP

The Treasury will likely notify a group of asset managers later on Wednesday that they were chosen to take part in the first wave of the Public-Private Investment Program funds, CNBC has learned.

The Wall Street Journal, which first reported details of the story, said that the selected companies are expected to include BlackRock and Pacific Investment Management (PIMCO). BlackRock and PIMCO declined to comment, the paper said.

The chosen asset managers will negotiate with the Treasury over the structure of their funds before being identified as formally qualified under the PPIP, the Wall Street Journal said.

This phase is expected to end in early June and from then the fund managers will have up to three months to raise over $500 million to buy securities weighing down banks' balance sheets, the paper reported.

PPIP's first phase will focus on commercial and residential mortgage-backed securities.

Of the 104 fund managers that applied for PPIP's first phase, traditional fixed-income funds are the biggest group, followed by real-estate asset managers and distressed-debt managers including private equity and hedge funds, a Treasury official told the Journal.