Invesco Ltd. (IVZ) and its WL Ross affiliate announced Monday they will head a group committing $1 billion to the Treasury Department's Public Private Investment Program.

Under PPIP, the Treasury plans to partner with private investors to purchase toxic assets from banks, with leverage guaranteed by the Federal Deposit Insurance Corp. The program will use up to $100 billion of bank-rescue funds from the Treasury.

Also helping in the Invesco/WL Ross effort is real-estate firm LeFrank Organization, which will be a co-investor, bond insurer Assured Guaranty Ltd. (AGO) and American Home Mortgage Services Inc., the nation's largest servicer of subprime mortgages.

Invesco President and Chief Executive Martin L. Flanagan said the program "will help stimulate the mortgage market and provide individual and institutional investors globally with compelling investment opportunities." He noted the company's fixed-income investors have had notable success "within the residential and commercial mortgage-backed securities markets."

WL Ross Chairman and distressed-asset investment giant Wilbur Ross said putting up to $1 billion into buying mortgages will be benefit from American Home Mortage Investment Corp.'s (AHMIQ) and Assured Guaranty Ltd's (AGO) insight into the market.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com