LANSING ? Credit Suisse First Boston, a global investment bank, has been named the first manager of the Venture Michigan Fund, a $150 million Fund of Funds aimed at giving Michigan technology start-up companies access to venture capital.
Seven candidates responded to an RFP issued in August 2004 by State Treasurer Jay Rising. Rising, in an interview, said the long delay from asking for RFPs and selecting the fund manager was because the state had to wait until the Internal Revenue Service certified the Fund a non-profit 501c3 organization.
Once the IRS certification was awarded, Rising told Credit Suisse First Boston it had the job. Credit Suisse First Boston signed the agreement on March 30, he said.
The Venture Michigan Fund is expected to raise capital through the sale of debt instruments to Michigan-based banks, insurance companies and other corporations. The capital will be invested into venture capital firms with a significant Michigan presence.
Rising said the other fly in the ointment is the legislation that created the Venture Michigan Fund required the Fund to be activated by Dec. 31. He?s asked Michigan Senator Mike Bishop, the author of the legislation, to offer an amendment that would extend the original deadline.
Once the statutory problem is solved, Credit Suisse First Boston can start fund raising. The company also is required to submit an investment plan that the Venture Michigan Fund board must approve. Rising said the Fund?s board spent a lot of time last year working out an investment policy, so that should not further slow the process. Rising hopes the Fund will be active this summer.
Rising said Credit Suisse First Boston has made a commitment to opening a Michigan office and already has personnel on the ground in the state. He said they already have a good knowledge of the Michigan venture capital landscape.
Credit Suisse First Boston will have representatives present on Thursday at the joint Great Lakes Entrepreneur?s Quest, New Enterprise Forum panel discussion in Ann Arbor that will discuss the Venture Michigan Fund. The panel, called Venture Capital and the Economic Impact of the Venture Michigan Fund, is scheduled for April 21 at the new MITC (Michigan Information Technology Center) building.
