Financing
| The Florida Growth Fund Initiative is seeking Florida companies to invest in |
| Published Wednesday, September 30, 2009 7:00 am |
Traditionally, Florida's pension fund was managed by out-of-state brokers who utilized a cookie-cutter approach to the investments. In an effort to keep the funds closer to home and simultaneously help boost Florida's revenues, business development and job creation, the Florida Legislature devised a strategy to keep a large portion of the state's investments "in-house." Florida's pension fund is one of the largest in the country; $250 million has been set aside for investment in the state's own resources: its people and its businesses.
Through Senate Bill 2310, the Florida Legislature officially recognized that technology and growth investments will help promote employer contributions to the system by strengthening the economy and the well-being of businesses. As part of the Florida Retirement System Pension Plan Trust Fund, the Florida Growth Fund seeks to enhance Florida's capacity for development, growth and innovation. The Florida Growth Fund manages $250 million of capital dedicated to prudent investment in technology and growth-related businesses with significant presence in the state of Florida.
On behalf of the Florida State Board of Administration, Hamilton Lane is actively pursuing investment opportunities for the Florida Growth Fund. Hamilton Lane has a successful history of managing in-state investment programs and has been working with the Florida State Board of Administration since 1997. Their rigorous due diligence process places Florida Growth Fund investments in one of two vehicles: fund partnerships and direct co-investments. Several partnerships and co-investment opportunities are currently in various stages of due diligence. Each opportunity is being reviewed stringently on a case-by-case basis.
Fund Partnership Opportunities
The Florida Growth Fund seeks to make meaningful commitments to top tier partnerships with unique companies that are either based in or have a demonstrable, material operational presence in Florida. Companies must have an attractive performance track record, differentiated return streams and strong management teams and be involved in such areas as:
- Venture Capital, Growth Equity and Small to Mid-Sized Buyouts
- Technology, Aerospace, Aviation Engineering, Renewable Energy, Medical and Life Sciences*
*Life Sciences means the use of information technology, engineering and biological and chemical sciences for the development and production of goods and services, including, but not limited to, drug development, medical implants and devices, bio-related diagnostic products, bio-agriculture technologies, bio-security, biofuels and bio-related applications.
The Florida Growth Fund is targeting 15-20 partnerships with a commitment target size of $10-20 million. A corollary benefit of fund partnership opportunities is job creation.
Co-Investment Opportunities
The co-investment program of the Florida Growth Fund will involve investments with profitable private equity firms with experienced management teams and attractive growth trends that are either headquartered in or have significant operations in the state of Florida.
The Florida Growth Fund is targeting 20-25 companies for co-investment opportunities with a commitment size of $5-15 million. Several avenues for sourcing and screening potential co-investments will be utilized by Hamilton Lane, including an active outreach program.
Want to know more?
In addition to our very close connections to resources in Tallahassee, Daszkal Bolton will be hosting a meet & greet with Hamilton Lane and interested parties in the near future. If your company meets the basic criteria for either a partnership or co-investment opportunity as described above, please contact us. It would be our pleasure to introduce you to the key players involved in the Florida Growth Fund Initiative and get you on the path to being considered as a positive investment opportunity in the state's eyes.
Michael I. Daszkal, CPA co-founded the firm in 1992. His personal vision, strategic direction and philosophies in business have been instrumental in the firm's growth. He continues to lead the firm as Chairman of the Executive Committee and Partner in charge of the Audit and Accounting Services Department. With over 20 years in the accounting industry, Michael's expertise transcends many areas of auditing and accounting, including due diligence, mergers and acquisitions, preparation of financial statements and SEC rules and guidelines. His practice focuses on providing professional services to businesses and individuals in the areas of auditing, accounting, business consulting and tax matters. Michael proudly serves middle-market companies, SEC registrants, high growth and emerging companies, high net worth families, private equity and acquisitive companies, and corporate executives. Contact him via email at mdaszkal@daszkalbolton.com or by phone at 561.953.1502.
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