21st century - michigan economic development …...... the 21st century investment fund and venture...

21st century21st Century

Equity Capital

www.MichiganAdvantage.org

The Michigan Economic Development Corporation (medc) recognizes that emerging, growing and expanding businesses have different capital needs. Michigan is committed to building a continuum of capital to support businesses at

various stages of the company life cycle. Our goal is to identify funding gaps in the marketplace and address them programmatically. A decade ago, equity capital was largely unavailable in Michigan’s capital market. These aggressive initiatives were designed to increase access to seed, venture capital and private equity for growth-oriented firms in the state.

Two investment funds, the 21st Century Investment Fund and Venture Michigan Fund, were established to invest more than $200 million into venture capital, private equity, and mezzanine funds to attract investors to Michigan. The two funds work together to create a continuum of capital from seed and early stage venture investments to later stage, buy-out, and mezzanine funds. Both funds are distinct but managed by Credit Suisse’s Customized Fund Investment Group. The funds profiled have received state funds and are actively seeking qualified investments in Michigan.

For additional information regarding the 21st Century Jobs Fund and its portfolio companies, visit www.MichiganAdvantage.org.


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SArboretuM Ventures II, L.P.VMF Commitment: $10 million, March 200721CIF Commitment: $7.5 million, March 2007Fund Size: $71 million

Arboretum Ventures is an early-stage venture capital firm specializing in the healthcare sector. They focus primarily on investments in medical technology and healthcare services. Founded in 2002 and located in Ann Arbor, Arboretum currently manages $95 million in capital.

They are interested in companies that:• Address large, growing patient populations. • Create less-invasive, easier-to-use medical products and services.• Develop products and services that lower the overall cost of

healthcare.

Additionally, they emphasize technologies that can be developed and commercialized in a highly capital-efficient manner.

Founder and Managing Director: Jan GarfinkleManaging Director: Tim Petersen

Michigan-based portfolio companies:Accord Biomaterials Accuri Cytometers, Inc.Esperion Therapeutics, Inc.HandyLab, Inc.


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SChrysALIs Ventures III, L.P.VMF Commitment: $7.5 million, June 2007Fund Size: $175.2 million

Chrysalis Ventures is a leading source of equity capital for young growth companies in mid-America. Chrysalis invests in early-stage and expansion-stage companies that operate within the healthcare, media and communications and business services sectors. Founded in 1993, and with offices in Louisville, Cleveland, Pittsburgh and Ann Arbor, Chrysalis has approximately $400 million under management and has invested in over 60 companies. In its current fund, Chrysalis manages $175.2 million.

Chrysalis’ senior team has worked together for 10 years, with 50 years of combined private equity investing experience, and is supported by a large, distinguished group of associates who average 10 years of business experience. Fund management is actively seeking investments in Michigan.

Founder, Chairman and Managing Director: David Jones, Jr.Managing Director: Koleman Karleski


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SFLetCher sPAght Ventures II, L.P.VMF Commitment: $10 milliontarget Fund Size: $100 million

Fletcher Spaght Ventures (fsv) is a Boston-based venture capital fund investing in emerging growth, high-technology and healthcare companies. Fsv invests in companies in the areas of it and it services, Internet, software, telecommunications, medical devices, healthcare informatics, biotechnology and healthcare services.

Established by Fletcher Spaght, Inc. (fsi), a strategy consulting firm focusing on the high technology and healthcare industries, fsv leverages fsi’s strategy, technology and new venture expertise to assess the potential for each investment opportunity. In addition, fsv uses the client base and extensive investment relationships fsi has built over 20 years to gain access to investment opportunities. fsv currently manages $117.7 million. Fund management is actively seeking investments in Michigan.

Founder and Managing Partner: John FletcherMichigan Representative: Frank Legacki


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Snorth CoAst teChnoLogy InVestors III, L.P.VMF Commitment: $5 milliontarget Fund Size: $50 million

North Coast Technology Investors invest in early-stage, technology-driven companies with outstanding growth prospects. They back entrepreneurs who seek to build major enterprises in the Midwest. They invest between $500,000 and $4 million over the life of an investment. Most of the investments North Coast makes are in the form of preferred stock. An initial investment may be as little as $100,000 in a seed stage or start up company. For opportunities with larger capital requirements, we also have strong relationships with commercial bankers, non-traditional financing sources and investment bankers throughout the Midwest. North Coast was the first venture capital firm in the region to create an Entrepreneur-in-Residence (eir) program.

This is a Midwest-centered firm, based in Midland with offices in Ann Arbor. The company invests in over 27 Michigan companies. Many of their investments are manufacturing companies. Fund management is actively seeking investments in Michigan.

Founder and Managing Partner: Lindsay AspegrenFounder and Managing Partner: Hugo Braun


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Snth Power Fund IV, L.P.VMF Commitment: $10 million, September 200621CIF Commitment: $10 million, September 2006Fund Size: $169.1 million

Nth Power is an early-stage venture capital firm specializing in the energy technology sector, encompassing energy intelligence, distributed energy, power reliability, and related services. Located in San Francisco, Nth Power is the first and most experienced vc firm, funding startup companies in the energy sector, having managed $420 million in four funds since 1997. Nth Power’s initial investment ranges from $1 million to $5 million and it makes further investments over time totaling between $10 million and $15 million. Currently, Nth Power manages $169.1 million.

Nth Power sources deals through NextEnergy, filling a gap in Michigan for alternative energy investment. Fund management is actively seeking investments in Michigan.

Partner: Rodrigo PrudencioNextEnergy Vice President of Industry Services: Dan Radomski

Michigan-based portfolio companies:Microposite, Inc.


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SrPM Ventures II, L.P.VMF Commitment: $10 million, January 200821CIF Commitment: $6 million, March 2008Fund Size: $60 million

RPM Ventures is an early-stage venture capital firm specializing in investments in high-tech and it materials, software, systems and semiconductors. Founded in 2000 and located in Ann Arbor, rpm currently manages $41.7 million.

RPM has two primary types of investments: • Companies with principal customers that are the Midwest

Fortune 500 manufacturing base. • Startups based on technology developed at one of the

Midwest’s premier research centers.

RPM leverages one of the globe’s largest it customer bases and a world-class research base that produces proprietary and revolutionary technologies. Rpm Venture’s strong relationships with university researchers, top-tier vc firms and executives in the Midwest manufacturing base add value to its investment strategy and portfolio. The managers’ preceding fund, Waypoint Ventures, invested in 16 companies that concurrent with or subsequent to our investment raised more than $275 million.

Founder and Managing Director: Marc WeiserFounder and Managing Director: Tony Grover

Michigan-based portfolio companies:Arbor Photonics, Inc. Mobius Microsystems, Inc. Quantum Learning Technologies


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SVenture InVestors eArLy stAge PArtners Fund IV, L.P.VMF Commitment: $10 million, June 200721CIF Commitment: $10 million, June 2007Fund Size: $117.7 million

Venture Investors is a seed and early stage vc firm focusing on Midwest investments in healthcare, technology, and clean tech. Founded in 1982 with offices in Madison, Wisc., and Ann Arbor, Venture Investors is currently investing out of its fifth fund and has over $200 million under management. In its current fund, Venture Investors manages $117.7 million. Venture Investors leverages the Midwest’s research institutions, researchers, and scientific discoveries to identify investment opportunities.

Managing Director: Jim AdoxExecutive in Residence: Chris Gibbons

Michigan-based portfolio companies:Incept BioSystems Inc.Tissue Regenerative Systems, Inc (trs)Nano Bio


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SMArAnon MezzAnIne Fund, L.P.21CIF Commitment: $7.5 million, July 2008target Fund Size: $250 million

Maranon Mezzanine Fund invests in a wide range of securities, including leveraged loans and equity co-invest ments in partnership with management teams and private equity firms in the lower middle market. Maranon provides tailored financing solutions for its clients, specializing in senior debt, mezzanine debt, and equity co-investment capital to private companies for leveraged buyouts, recapitalizations, refinancings, growth initiatives, acquisitions, and esops. Maranon targets companies in the business services, distribution and manufacturing sectors.

Maranon’s ability to underwrite debt and provide equity co-investments gives it a one-stop financing capability that offers value to management teams and private equity firms. It focuses on companies with $5 million to $30 million of ebitda and enterprise valuations of $30 million to $150 million. In its current fund, Maranon manages $92.8 million.

Principal: Richard Jander


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SMIdwest MezzAnIne Fund IV, L.P.21CIF Commitment: $10 million, June 2008Fund Size: $260 million

Midwest Mezzanine Fund is a private equity firm that focuses on smaller middle-market mezzanine investments throughout the U.S. and Canada. Midwest has invested over $450 million in over 70 companies. Founded in 1992 and located in Chicago, Midwest currently manages $260 million.

Midwest invests in companies with operating cash flow or ebitda between $3 million and $15 million and an initial enterprise value between $15 million and $100 million. It strives to make 20 to 25 investments in the manufacturing, service and distribution industries, primarily in the Midwest.

Founder and Senior Managing Director: David A. GezonVice President: Evan Gobdel

Michigan-based portfolio company:Eliason Corporation


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SQuAd PArtners II, L.P.21CIF Commitment: $10 million, September 2007 target Fund Size: $82.3 million

Quad Partners is a specialist private investment firm that makes investments in the education industry and is the most active investor in privately-owned education companies in the U.S. Quad will invest in a broad range of transactions, including buyouts, growth capital financings, recapitalizations, and refinancings. Quad seeks investments in small, well-established, owner-operated education companies with $5 million to $75 million in annual revenue, positive cash flow and significant growth potential. Specifically, Quad is interested in postsecondary schools, k–12 proprietary schools, childcare, tutoring, educational products and services, professional education and journals, corporate training, and online journals. Founded in 2000 and located New York City, Quad currently manages $66.4 million and has raised $200 million in funds. Fund management is actively seeking investments in Michigan.

Founder and Managing Partner: Lincoln FrankMichigan Representative: Patricia Fischer


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SreLAtIVIty Fund, L.P.Commitment: $10 million, October 2007target Fund Size: $300 million

The Relativity Fund acquires controlling ownership positions in middle to lower-middle market companies that are generally in the later stages of development. The Fund targets North American companies and typically invests between $5 million and $30 million of equity per investment. Its key investment initiative is to drive operational excellence in portfolio companies while developing relationships with management teams. The team’s industry expertise includes: aerospace, automotive, business services, consumer, defense, general manufacturing, and healthcare. Fund management is actively seeking investments in Michigan.

Co-Founder and Senior Managing Director: Leslie L. Armitage Co-Head and Senior Managing Director: Joyce Johnson-Miller Michigan Representative: Sean Caesar

21st century - michigan economic development …...... the 21st century investment fund and venture...

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