Mid-Size Businesses, State Pensions Will Benefit From Invest Michigan!

A new capital support structure is now in place for mid-size companies. Invest Michigan!, which was proposed by Governor Jennifer Granholm in her 2008 State of the State Address, will use investments in Michigan-based businesses to grow state pension funds.

While programs like the 21st Century Investment Fund and the Venture Michigan Fund aim to support early-stage business development in Michigan, a new capital support structure is now in place for mid-size companies. Invest Michigan!, which was proposed by Governor Jennifer Granholm in her 2008 State of the State Address, will use investments in Michigan-based businesses to grow state pension funds. These investments will in turn help small and mid-sized companies attract, retain and create jobs for Michigan workers while promoting economic diversification.

“This program is really designed to invest in and help grow those companies, both in traditional manufacturing as well as in 21st century technology businesses, which are growing and succeeding and needing more capital to grow even faster,” said Ned Staebler, Director of Capital Markets Development for the Michigan Economic Development Corporation (MEDC). “We know they're going to be successful over time – the question is will they go from 100 employees to 150 employees over the next five years, or do they go from 100 employees to 300 employees over the next five years?

Invest Michigan! has equally divided $300 million in committed state pension funds between a Growth Capital Fund and a Michigan Opportunity Fund. The Growth Capital Fund, co-managed by General Partners Beringea and Credit Suisse, will make direct investments in venture capital and expansion-stage companies, as well as co-investments with other private equity companies. The Michigan Opportunity Fund, managed by Glencoe Capital, will target potential buyouts and acquisitions of small and medium-sized businesses. Current investment evaluations for both funds include businesses in the information technologies, healthcare, advanced materials, manufacturing, cleantech/alternative fuels and business and consumer services sectors.

Invest Michigan! will receive support from the Business Leadership Council, a select group of successful Michigan executives, which will provide experience, expertise and networking capabilities to the program. Additionally, the MEDC will work closely with Invest Michigan! to gain further leverage in attracting companies to the state.

For more information on Invest Michigan!, contact one of the General Partners or click here.