Illinois Treasurer Launches Illinois Growth & Innovation Fund

Illinois Treasurer Launches Illinois Growth & Innovation Fund

April 13, 2016

On April 4th 2016 the Illinois Treasurer’s Office launched the Illinois Growth & Innovation Fund “ILGIF” which will invest more than $222 million in Illinois based venture capital and private equity funds over the course of six years.  The target is to commit $74 million each of the first three years, with remaining uncommitted capital and earning distributions committed in the fourth, fifth and sixth years of the program.

IVCA helped launch TDA I in 2003 with the late, great Treasurer Judy Barr Topinka.  That $75 million fund is now fully invested with the following results:

  • Realized Gains – Since inception through September 30, 2015, the Treasurer’s Office has received distributions of $27,821,778 in capital gains and dividends.
  • Market Value – As of September 30, 2015, the market value of the TDA I portfolio was $54,575,424.
  • Internal Rate of Return – As of September 30, 2015, the total IRR of TDA I is 5.8% annualized, net of investment management fees.  That is up from 5.6% in September 2014, and 4.9% in December 2013.

IVCA has been working diligently since 2005 to establish a successor fund to TDA I but met with lots of headwinds while Alexi Giannoulias and Dan Rutherford (Barr Topinka’s successors) were Treasurer.  Treasurer Mike Frerichs and his team have brought thoughtful enthusiasm to the program selecting respected fund-of-funds investor 50 South Capital Advisors as ILGIF's Program Administrator through a public bidding process. Marquette Associates serves as the External Investment Consultant, and the program is supported by the ILGIF Advisory Council.

  ILGIF Goals

  • Deliver strong investment performance for Illinois
  • Drive economic development for Illinois
  • Foster a more connected and engaged entrepreneurial community in Illinois 

ILGIF Investment Strategy

  • Targeted 3-year investment period (2016-2018) within an overall six-year commitment window
  • 20-25 fund investments ($2.5-$15.0M per fund)
  • Minimum fund size of $25 million at the time of final closing (exceptions may apply)
  • Managers will demonstrate a commitment to diversity, both among their staff and their portfolio companies
  • ILGIF will not commit more than 15% of its total portfolio size to any underlying fund (i.e., $33 million)
  • ILGIF will not commit more than 1/3 of its total portfolio size in any given vintage (i.e., $74 million)
  • ILGIF's fund investment portfolio will be diversified across vintage, stage, sector and strategy (i.e., venture capital, growth capital, buyout, turnaround, credit, etc.)
  • ILGIF will seek to invest in Small Business Investment Companies (SBICs) Managers will utilize reputable service providers (i.e., legal, accounting, fund administration, tax, banking, etc.)

ILGIF Investment Policy – Click here to access the ILGIF Investment Policy Statement. 

Supporting Diversity – ILGIF gives clear direction to ensure that qualified fund managers and technology businesses owned by minorities, women, military veterans, or disabled persons are recommended for receipt of ILGIF assets.

Complete information can be found at www.ILGIF.com