©2016 Michigan Economic Development Corporation

21st Century Investment Fund Increases Capital Available to Entrepreneurs

Friday, June 08, 2007

Michael Shore, MEDC, (517) 335-4590
Bob Payne, Credit Suisse, (248) 945-7373

$45 million committed since January

Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito today announced up to $10 million in new investment through theMichigan21st Century Investment Fundto Quad Partners, a private equity firm. The allocation is part of up to $114 million appropriated by the bi-partisan legislature for private equity, venture capital and mezzanine capital investments as part of the governor's 21st Century Jobs Fund initiative. The funding has significantly increased the amount of capital available to Michigan entrepreneurs-a key goal of the 21st Century Jobs Fund initiative. 

"Through the 21st Century Investment Fund we are successfully helping to meet the capital needs of our entrepreneurial community," Granholm said. "These investments will leverage other private equity investments, further increasing the amount of capital available to new and fast-growing Michigan companies. The end result: a healthier, more diverse economy and new jobs for Michigan workers." 

Quad Partners was founded in 2000 and specializes invalue-added private equity investments. The firm will open an office in Southeast Michigan and actively seek Michigan companies for investment. 

The amount of venture and private equity capital available to Michigan companies has significantly increased since January through the MSF's authorization of up to $45 million of new investments by the 21st Century Investment Fund. In addition to Quad Partners, the following venture capital firms have had investments approved: 

  • Up to $7.5 million for Arboretum Ventures, an Ann Arbor-based fund that invests in medical device, diagnostic, and healthcare companies. This young venture firm is raising its second life sciences fund focused on early-stage companies 
  • Up to $7.5 million for Ann Arbor-based EDF Ventures, a leading venture capital firm investing in early-stage life sciences and information technologies. The firm focuses on young companies that are developing breakthrough technologies to address large problems or transform existing markets 
  • Up to $10 million for Venture Investors LLC, one of the premier providers of seed and early stage venture capital in Midwest life sciences, information technology and engineering companies. The firm has opened an office in Ann Arbor. 
  • Up to $10 million for Nth Power, which is partnering with Detroit-based NextEnergy to identify attractive early stage alternative energy opportunities within Michigan. The firm invests in clean energy technology companies 

"The investments we are making through the 21st Century Investment Fund will help fuel the capital needs of Michigan's key industries," said Epolito, who is chair of the MSF board. "There's a commitment across the board to redefining our economy and it's great to see we're making substantial progress." 

The 21st Century Jobs Fund is a $2 billion, 10-year initiative to diversify the state's economy and grow high-tech companies and jobs. The Michigan Strategic Fund is responsible for approving 21st Century Investment Fund allocations, and has charged Credit Suisse with managing its capital investment programs. Commitments through the fund can only be invested in companies that have a strong Michigan presence. The program is focused on generating strong returns while creating and retaining Michigan jobs. 

"We at Credit Suisse continue to be extremely pleased with the abundant level of interest that's been shown by high quality managers for investment in Michigan," said Kelly Williams, Credit Suisse's managing director and co-head of its Customized Fund Investment Group. "The expertise and enthusiasm brought to bear on opportunities in Michigan will enable the state's economy to develop in all of the areas identified by the governor as priorities for growth." 

The 21st Century Investment Fund seeks to strengthen and diversify Michigan's economy by fostering the creation and growth of new jobs, new businesses, and new industries within the state through investments in private equity, venture capital and mezzanine funds. More information is available at www.michigan21stcenturyinvestmentfund.com.