RLJ Western Asset Management Liquidates Public Private Investment Partnership At A 23.9% Internal Rate Of Return For Treasury

RLJ Western Asset Management Liquidates Public Private Investment Partnership
               At A 23.9% Internal Rate Of Return For Treasury

PR Newswire

PASADENA, Calif., Nov. 20, 2012

PASADENA, Calif., Nov. 20, 2012 /PRNewswire/ --RLJ Western Asset Management,
LP today announced that it has returned substantially all assets of the RLJ
Western Asset Public/Private Master Fund (the "RLJ/WA PPIP"). The RLJ/WA
PPIP was jointly owned by the U.S. Department of the Treasury ("Treasury") and
private investors. Treasury received $416.8 million of investment gains in
addition to the return of $620.6 million in committed capital. These profits
represent a 23.9% internal rate of return on Treasury's equity investment, net
of fees and expenses, since the fund's inception in November 2009 and a 1.67x
net multiple on committed capital. Treasury received $10.5 million in
proceeds from warrants for total proceeds from the RLJ/WA PPIP of $1.05
billion. The RLJ/WA PPIP also repaid $1.24 billion in loans with interest to
Treasury. The RLJ/WA PPIP was managed by a joint venture between the RLJ
Companies and Western Asset Management Company as part of the Treasury's
Legacy Securities Public-Private Investment Program.

"The RLJ Companies and Western Asset are extremely pleased to have
participated as a manager in the Public-Private Investment Program, helping to
provide liquidity for legacy mortgage assets and generating attractive returns
for our clients and United States taxpayers," said Paul Jablansky, Head of
Structured Products, for Western Asset Management Company.

The Legacy Securities Public-Private Investment Program was conceived as a
distressed asset investment opportunity with the goal of supporting
functioning non-agency mortgage-backed securities markets and allowing banks
to redeploy capital to businesses and consumers. Treasury announced the
program in March 2009 as part of the Obama Administration's broader Financial
Stability Plan. The RLJ Western Asset joint venture was one of the original
nine fund managers pre-qualified to raise private investment capital and
administer investing for the Legacy Securities Public-Private Investment
Program.

About Western Asset

Western Asset, a unit of Legg Mason, Inc. (NYSE: LM) is one of the world's
premier fixed-income managers. With offices in Pasadena, New York, London,
Tokyo, Singapore, Hong Kong, Melbourne and Sao Paulo, Western Asset offers
institutional and retail clients a full range of fixed-income products. By
devoting all of its resources to fixed-income, Western Asset is able to
provide a full commitment to its clients in every area of the firm. Western
Asset's long performance track record and global presence has them positioned
to continue their commitment to excellence in fixed-income investment
management and client service. As of September 30, 2012, Western Asset had
$459 billion in assets under management. For more information visit
www.westernasset.com.

About The RLJ Companies

The RLJ Companies, founded by Robert L. Johnson, is an innovative business
network that provides strategic investments in a diverse portfolio of
companies. Within The RLJ Companies portfolio, Johnson owns or holds interests
in businesses operating in hotel real estate investment trust; private equity;
financial services; asset management; insurance services; automobile
dealerships; sports and entertainment; and video lottery terminal (VLT)
gaming. The RLJ Companies is headquartered in Bethesda, MD, with affiliate
operations in Charlotte, NC; Little Rock, AR; Los Angeles, CA; San Juan, PR;
and Monrovia, Liberia. Prior to founding The RLJ Companies, Johnson was
founder and chairman of Black Entertainment Television (BET). For more
information visit www.rljcompanies.com.

SOURCE Legg Mason, Inc.

Website: http://www.leggmason.com
Contact: Mary Athridge, +1-212-805-6035, mkathridge@leggmason.com
 
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