21st Century Investment Fund Invests in Midwest Mezzanine IV, LP to Grow Michigan Companies, New Jobs

Wednesday, April 23, 2008

Granholm: “Increasing the amount of capital available to support new and fast-growing Michigan companies is part of our economic strategy to transform Michigan’s economy and create new jobs"

“Increasing the amount of capital available to support new and fast-growing Michigan companies is part of our economic strategy to transform Michigan’s economy and create new jobs,” Granholm said.

Chicago-based Midwest Mezzanine, is one of the oldest and most experienced private equity firms that focus on smaller middle-market mezzanine investments. Since 1992, Midwest has invested over $41.4 million in eight Michigan-based companies. The firm’s investment team has over 100 years of experience as lenders and investors in middle market companies and over 55 years of collective mezzanine experience. Midwest, which plans to open an office in West Michigan, has developed extensive relationships with private equity sponsors, investment groups, lenders, accountants and intermediaries throughout the state.

“We are committed to building and sustaining the strong capital markets needed for businesses to grow and prosper at all stages of development – from high-tech start ups to large corporations,” said Epolito, the chair of the MSF board.

The 21st Century Investment Fund is a major component of Governor Granholm’s 21st Century Jobs Fund, a $2-billion, 10-year initiative to diversify the state’s economy and grow high-tech companies and jobs. 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. Including this investment, the MSF has authorized up to $68.75 million of investments in venture capital, mezzanine, and private equity funds through the 21st Century Investment Fund.

“We are very excited to add such a talented fund manager to the Michigan 21st Century Investment Fund,” said Kelly Williams, a Managing Director and Co-Head of Credit Suisse’s Customized Fund Investment Group, the Michigan 21st CIF fund manager. “There is a particularly strong demand for mezzanine financing in the current market. MMF has had a long and successful experience investing in Michigan based companies. We believe that the fund manager has an experienced team that will play a meaningful role in helping Michigan-based companies access the important capital they need to grow.”

The $109 million 21st Century Investment Fund seeks to strengthen and diversify Michigan’s economic base 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, as well as potential co-investments in individual companies alongside these funds. The Michigan Strategic Fund contracts with Credit Suisse to develop and administer investment programs under the Michigan 21st Century Investment Fund. More information is available at www.michigan21stcenturyinvestmentfund.com.

About Michigan Economic Development Corporation (MEDC)

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