Michigan Venture Fund Managers Share Few Details On Fund

ANN ARBOR ? Senior executives from Credit Suisse First Boston, the first manager of the new Venture Michigan Fund, provided few answers Thursday night during a panel discussion that was suppose to shed light on how the New York-based investment banking firm would dispense money from the $150 million Fund.

CSFB vice presidents David Almodovar and Vikram Bhaskar joined State Treasurer Jay Rising and Detroit Renaissance Director Douglass Diggs on the panel at the new $14 million Michigan Information Technology Center in Ann Arbor. The event was co sponsored by the Great Lakes Entrepreneur?s Quest and the New Enterprise Forum.

Neither Almodovar nor Bhaskar ? a University of Michigan Business School graduate ? did more than speak in generalities about how they have managed similar funds in Oregon and Indiana.

Almodovar did admit that other in-state investment funds have not been terribly successful so far. Still, he said, CSFB?s goal was to generate great returns in Michigan.

Bhaskar said the Michigan fund would not be focused on any cities in the state. He didn?t say what city or cities CSFB would open offices. Currently, the New York-based investment banking firm, owned by a Swiss corporation, has no Michigan presence.

Bhaskar said eight to 10 venture capitalists, drawn from local, regional and national applicants, will receive money from the Venture Michigan Fund.

By law, the Venture Michigan Fund must disperse funds within ten months after receiving its 501c3 non profit tax status from the U.S. Internal Revenue Service. That designation was awarded about a month ago.

Another big issue, Treasurer Rising said, is the original law required the Venture Michigan Fund to begin its work by Dec. 31, 2004. The law?s sponsor, Sen. Mike Bishop, is seeking to amend the legislation to extend the original deadline into 2005.

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.