Illinois' Technology Development Account (TDA) Helps Create over 3,500 Jobs

January 18, 2012

Since its inception in 2003, investments by the Illinois Treasurer's office in venture capital and private equity funds has resulted in over 3,500 jobs in 60 private Illinois companies. This is a 117% increase in jobs since the time of investment in these companies. These employment gains follow a 90% increase in companies' revenue since initial investment.

In 2003, the State Treasurer was authorized to commit up to 1% of the State's investment portfolio into venture capital and private equity firms located in Illinois with a goal of investing in Illinois growth companies. Managed by Northern Trust Global Advisors, the state's investment in 14 venture and private equity firms has resulted in tremendous job creation for the state thanks to a 17.5 times match of private investor dollars. The state treasury's funds investments totaled $44.8 million since 2003 and private partnerships joined in with an additional $742 million making total investments in these 60 companies $787 million through December 31, 2011. To date, $11.3 million has been returned to the State Treasury from the sale of portfolio companies.

In 2011, the State Treasurer Dan Rutherford was authorized to commit 2% of the State's investment portfolio into venture capital and private funds dedicated to investing at least 2 times the State's money into private Illinois companies. This fund, Technology Development Account II (TDA II), authorizes the Treasurer to seek additional investors for a - œsidecar fund-  that will allow corporations, endowments, foundations and pension funds to cost effectively Invest in Illinois companies.

Treasurer Rutherford's office is currently finalizing the RFP to select a manager for TDA II. Upon selection, the fund-of-funds manager will be responsible for identifying investors for the sidecar fund and for investing in funds committed to investing in Illinois companies.

Notes:
  • Data collected by IVCA from TDA funds
  • Not all firms reported companies' Illinois employment
  • Not all firms reported company revenue