LANSING – The Michigan Strategic Fund board approval Wednesday a $10 million investment through the Michigan 21st Century Investment Fund to Midwest Mezzanine Fund IV, LP. The fund will focus on investments in Michigan-based businesses in the manufacturing, distribution and service industries.
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 more than 100 years of experience as lenders and investors in middle market companies and more than 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.
?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,? Michigan Gov. Jennifer Granholm said in a press release.
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. Other investments include Arboretum Ventures, Ardesta Ventures, Nth Power, Quad Partners, Relativity Fund, RPM Ventures and Venture Investors.
Credit Suisse’s Customized Fund Investment Group will make investment commitments totaling $109 million to private equity fund managers and co-investments over a three year commitment period through a competitive RFP process.
?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 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.
?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 Michigan Economic Development Corp. CEO James Epolito, the chair of the MSF board.
More information is available at Michigan21stCenturyInvestmentFund.Com
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