ILGIF
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Driving Innovation - Driving Job Growth - Driving Performance

Driving the Future of Illinois

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About

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The investment put forth through ILGIF signifies Illinois’ emergence as a tech leader. These dollars will fund promising entrepreneurs who will use the money to hire others in furtherance of their dream and the betterment of our tech community and entire State economy.
— Illinois Treasurer Michael Frerichs
 

Michael Frerichs was elected Illinois State Treasurer in November 2014.  In Illinois, the Treasurer is the State’s Chief Investment Officer and Frerichs is a Certified Public Finance Officer.  The Treasurer’s Office is responsible for preserving the State’s investment portfolio, providing the necessary liquidity to meet daily cash flow demands, and consistently producing investment earnings that enrich the people and communities of Illinois.  

Currently, the Treasurer’s Office manages approximately $28 billion, which includes $13 billion in state investments, $10 billion in college savings plans and $5 billion on behalf of state agencies and local governments.  The Treasurer’s Office also oversees the Unclaimed Property program, administers the State’s multiple banking functions and financial services, and provides several low-interest loan and financial programs aimed at spurring economic growth, creating jobs, assisting farmers, enhancing Illinois communities, and making home ownership a reality.  Ultimately, the Treasurer’s Office returns $28 in revenue to the State for every $1 spent on operations.

Since Frerichs took office, the Treasurer’s Office has spearheaded a number of initiatives designed to enhance the economic standing of Illinois families and the State on the whole.  Under Frerichs, the Treasurer’s Office has lowered fees for the Bright Directions College Savings Program and the plan received a ratings upgrade from Morningstar, ranking the program among the best in the country.  The Treasurer’s Office also made significant progress toward the implementation of two new programs:  (i) Secure Choice, to help people retire with dignity; and (ii) Achieving a Better Life Experience (ABLE), which assists individuals with disabilities get the tools necessary to attain financial stability and independence.  Finally, the Treasurer’s Office continues to promote more opportunities for Minorities, Women, Veterans and Disabled individuals (MWVD).  Under the Frerichs’ administration, the State experienced a nearly 1,000% increase in assets brokered by MWVD firms.

For additional information, please visit http://www.illinoistreasurer.gov/.  

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Overview

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Overview

The Illinois Growth and Innovation Fund (ILGIF) will invest in ways that attract, assist and retain quality technology businesses in Illinois.  On August 29, 2018, Illinois Treasurer Michael Frerichs announced an increase to the amount of investment capital available in ILGIF, increasing the total to over $700 million in investment capital from the State's existing investment portfolio to be invested with Illinois venture capital and growth equity firms. 

HISTORY

In August 2018, the Illinois General Assembly amended the Technology Development Act (30 ILCS 265), allowing the Illinois Treasurer to segregate up to five percent (5%) of the State’s investment portfolio to primarily invest with venture capital and growth firms located in Illinois with a goal of investing in technology businesses seeking to locate, expand or remain in Illinois.

Legally named the Technology Development Account I (TDA I), lawmakers in 2002 authorized the initial round of $74 million in investments to Illinois venture capital firms. TDA I created approximately 6,300 jobs and generated more than $150 million in private investment.

Lawmakers in 2011 authorized a second round of TDA funding, called TDA II. However, the treasury did not act on the authorization. Illinois Treasurer Michael Frerichs, however, used the TDA II authority to establish and launch the $222 million ILGIF investment fund and began making investments in 2016.

ILGIF GOALS

  1. Deliver strong investment performance for Illinois

  2. Drive economic development for Illinois

  3. Foster a more connected, inclusive and engaged entrepreneurial and venture community in Illinois

  4. Support diversity and inclusion to enable worthy fund managers and grow promising technology companies

  5. Integrate sustainability factors to increase expected financial returns and minimize projected risk

MISSION

Through the Technology Development Account IIa, also known as the Illinois Growth and Innovation Fund, the Illinois Treasurer primarily makes targeted investments with venture and growth equity funds that invest in technology-enabled businesses and are either based in Illinois or possess a significant workforce in Illinois. Tech-enabled businesses can be situated in industries such as, but not limited to: agricultural tech, bio tech, consumer tech, financial services tech, green tech, health care tech, logistics tech, manufacturing tech, and services tech.

Vision

ILGIF aims to invest more than $700 million creating an estimated 60,000 jobs.  

Values

ILGIF seeks to optimize transparency, governance best practices, and alignment of interests when investing. They are essential to effective governance and investment outcomes.  

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Policy

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ILGIF INVESTMENT POLICY

The ILGIF Investment Policy is designed to ensure that the Illinois Treasurer, as well as any contractors the Treasurer retains to provide services related to ILGIF, take lawful, prudent and effective actions while supporting ILGIF.  The Investment Policy is designed to allow for sufficient flexibility in the management oversight process to take advantage of investment opportunities as they arise, while setting forth reasonable parameters to ensure prudence and care in the execution of ILGIF.

Please click here to access the ILGIF Investment Policy

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Strategy

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ILGIF Commitment to Diversity

ILGIF shall seek to identify and invest in fund managers and co-invest in Illinois-domiciled companies that are (i) more than 50% owned and/or led by minorities, women, military veterans, or disabled persons, and/or (ii) geographically located in diverse communities or low-to-moderate income (LMI) communities. 

 

ILGIF Fund Investment Strategy Diversification

  • Fund of fund investment strategy; approximately 10-15 investments per year
  • ILGIF will invest about $75 to $100 million annually in perpetuity
  • Typical commitment size ranges from $2.5M to $15M
  • Minimum fund size of $5 million at the time of final closing (exceptions apply)
  • ILGIF's fund investment portfolio will be diversified across vintage, stage, sector and strategy
  • ILGIF will seek to invest in Small Business Investment Companies (SBICs)
  • Managers will demonstrate a commitment to diversity, both among their staff and their portfolio companies
  • ILGIF will seek to incorporate sustainability factors when evaluating prospective investments
  • Managers will utilize reputable service providers

Ultimate portfolio construction may vary. For illustrative purposes only. Amounts are percentages of the total fund investment portfolio.


 

Investment Objectives

The Illinois Treasurer maintains a number of underlying objectives for the investment of from ILGIF capital including:

 

Strong Investment Performance

ILGIF will deliver strong, market-driven investment performance and invest to attract, assist, and retain quality technology businesses.

Economic Catalyst

Promote the growth of jobs and entrepreneurial and venture capital environments in Illinois. ILGIF invests capital in order to support the expansion and developmentof Illinois technology businesses, which in turn bolsters job creation, attracts private investment capital and expands the state’s economy.

Engaged Entrepreneurial and Venture Community 

ILGIF seeks to foster a more connected, inclusive and engaged entrepreneurial and venture community in Illinois by leveraging and supporting the growing technology ecosystem located in Illinois.

 

Diversification

In order to achieve ILGIF investment objectives, investments shall be prudently diversified so as to minimize the risk of loss.

 

Sustainability Factors

ILGIF will incorporate sustainability issues such as (1) corporate governance, (2) environmental risks; (3) human capital; (4) social capital; and (5) business model and innovation.  that possess material and relevant financial impacts on the long-term value of our investments.

Foster Additional Investments in Illinois Technology Businesses 

ILGIF shall encourage the investment and philanthropic communities to explore investment opportunities in Illinois technology businesses to bring together, and add to, Illinois' rich science, technology, agricultural, financial, and business communities.

Inclusion

ILGIF will encourage and support broad inclusion to enable worthy fund managers and promising technology companies owned by minorities, women, military Veterans, or persons with disabilities and/or businesses geographically located in diverse communities or low-to-moderate income communities be recommended for investment.

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Requirements

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  1. ILGIF managers will provide unaudited quarterly financial statements and capital account statements to 50 South Capital within 60 days of quarter end and audited financial statements within 90 days of quarter end.
  2. ILGIF managers shall invest a minimum of twice the aggregate amount of committed capital received from ILGIF in "Illinois companies" during the life of such manager's fund(s) where ILGIF is a limited partner.

    • For example, if ILGIF commits $5.0 million to a fund, the recipient fund must invest at least $10.0 million in "Illinois companies" over the life of the fund.
  3. ILGIF managers will provide quarterly reports on the diversification of recipient portfolio companies, including the ownership and management status of recipient portfolio companies with regard to minority, women, veteran and/or disabled status. 
  4. ILGIF managers will provide quarterly reports on the economic impact of recipient fund investments on the Illinois economy, including the growth of the employee headcount at portfolio companies, the growth of their physical real estate presence in Illinois and other associated economic data.
  5. For additional details on reporting requirements for all ILGIF managers, please see the attached Excel file as well as ILGIF's investment policy statement. This is the standardized reporting mechanism for all ILGIF managers to report to 50 South Capital or the Illinois Treasurer (as applicable) on a quarterly/annual basis.

ELIGIBILTY

STEP ONE:  ARE YOU A "VENTURE CAPITAL FIRM"?

A “venture capital” firm makes equity financings that are provided for starting up, expanding, or relocating a company, or for related purposes such as financing for seed capital, research and development, introduction of a product or process into the marketplace, or similar needs requiring risk capital. This includes, but is not limited to, financing classified as venture capital, mezzanine, buyout and/or growth.

If you answered YES to Step One, move on to Step Two below.  If you answered NO, your firm is not eligible for an investment by ILGIF at this time.

 

STEP TWO:  DOES YOUR VENTURE CAPITAL FIRM

INVEST IN "TECHNOLOGY BUSINESSES"?

A “technology business” means a company that has as its principal function the providing of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services, manufacture of goods or materials, the processing of goods or materials by physical or chemical change, computer related activities, robotics, biological or pharmaceutical industrial activity, or technology oriented or emerging industrial activity.

If you answered YES to Step Two, move on to Step Three.  If you answered NO to Step Two, your firm is not eligible for an investment by ILGIF at this time.  

 

STEP THREE: IS YOUR TECHNOLOGY-FOCUSED VENTURE

CAPITAL FIRM AN "ILLINOIS VENTURE CAPITAL FIRM"?  

A. Does your technology-focused venture capital firm have a majority (50%+) of its employees in Illinois, or at least one managing partner domiciled in Illinois?  

If you answered YES to (A) above, you are an Illinois venture capital firm and are eligible for an investment by ILGIF.

If you answered NO to (A) above, please refer to question (B) immediately below.

B. Has your venture capital firm invested in at least one "Illinois company" (i.e., a company that is headquartered in or has at least one physical office and one full-time employee in Illinois) in each of its prior funds (on average), or if your venture capital firm has only one prior fund, has it invested in at least two Illinois companies?

If you answered YES to (B) above, you are an Illinois venture capital firm and are eligible for an investment by ILGIF.

If you answered NO to (B) above, you are not eligible for an investment by ILGIF at this time.  

 
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Portfolio

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Investments


Select Portfolio Companies

Portfolio Construction

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Impact

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ILGIF PROJECTED Impact

  The goal of ILGIF is two-fold: earn investment returns for the state and support technology and related jobs here in Illinois. The investment is expected to create approximately 60,000 jobs in Illinois and attract more than $2 billion in additional private-sector money, which will further spur interest in the Midwest tech and entrepreneurial scene that Illinois anchors.

 
 

Invest $700M+ State Funds

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Attract $2B+ Private Investment

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Create 60,000+ Jobs

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IMPACT SINCE JANUARY 01, 2016


4,000

Number of new jobs created 


$840.1 million invested in

IL companies


$8.4 Billion

in aggregate GAAP revenue 


$77.5 million invested in

minority & women-owned funds


Invested in 49 businesses owned by

minorities, women, Veteran,

or disabled persons

Continue to identify, recruit & recommend MWVD fund managers/businesses 


INVESTED IN 15 GREEN TECHNOLOGY BUSINESSES


Success Stories

In addition to the aggregate benefits of the program, the Treasurer's technology investments have played a pivotal role in many individual company success stories.  These stories acutely demonstrate how this program fosters economic and job growth while earning enhanced investment returns for the State.

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Stakeholders

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Illinois State Treasurer: The treasurer’s office exercises authority and control over the management of ILGIF, by setting policy and procedures which staff executes either internally or through the use of contractors.


ILGIF Program Administrator: 50 South Capital Advisors, LLC is an alternatives asset management firm designed to meet the core strategic needs of investors seeking access to venture capital, private equity and hedge funds. It is a wholly-owned subsidiary of Northern Trust Corporation.


ILGIF Advisory Council: The Advisory Council also serves as a general resource to the entrepreneurial, venture capital and technology business community, actively collaborating with the IllinoisTreasurer and 50 South Capital to provide stakeholders and members of the public with information on the purpose, operation and impact of ILGIF.

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Board

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ADVISORY COUNCIL

The ILGIF Advisory Council performs a number of consultative and outreach duties to support ILGIF, including providing guidance regarding the identification of fund managers, reviewing fund recommendations, assisting in the portfolio construction/strategy, reviewing investment performance and civic engagement.  The Advisory Council also serves as a general resource to the entrepreneurial, venture capital and technology business community, actively collaborating with the Treasurer’s Office and 50 South Capital to provide stakeholders and members of the public with information on the purpose, operation and impact of ILGIF.

The Advisory Council consists of individuals that possess knowledge and expertise in the venture capital and private equity industry. Current members include:


  • Maura O'Hara
  • David Baker
  • Krista Hatcher
  • Jack Levin
  • Keith Crandell
  • Meghan Otis
  • Kristen Gomez
  • Howard Tullman
  • Shari Young Lewis
  • Jake Braun
  • Omar Duque
  • Ryan Mundy
  • Phil Nevels

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Resources

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ILLINOIS GROWTH AND INNOVATION FUND STRATEGIC PARTNERS

The Illinois Treasurer's Office, 50 South Capital and the ILGIF Advisory Council work with a number of strategic partners to maximize the impact and effectiveness of ILGIF.  Key strategic partners include:

 
 

 

HELPFUL LINKS

Below are several helpful links to additional information on entrepreneurship and the venture capital/private equity industry.

 
 

ILGIF Meeting Materials

ILGIF Advisory Council – 2018 Meeting Schedule

November 20, 2018 - Meeting Agenda

June 19, 2018 – Meeting Agenda

April 3, 2018 – Meeting Agenda and Meeting Minutes

March 13, 2018 – Meeting Agenda and Meeting Minutes

February 13, 2018 – Meeting Agenda and Meeting Minutes

December 12, 2017 – Meeting Agenda and Meeting Minutes

November 7, 2017 – Meeting Agenda and Meeting Minutes

September 19, 2017 – Meeting Agenda and Meeting Minutes

June 6, 2017 – Meeting Agenda and Meeting Minutes

March 7, 2017 – Meeting Agenda and Meeting Minutes

January 26, 2017 – Meeting Agenda and Meeting Minutes

December 6, 2016 – Meeting Agenda and Meeting Minutes

September 19, 2016 – Meeting Agenda and Meeting Minutes

June 20, 2016 – Meeting Agenda and Meeting Minutes

May 9, 2016 – Meeting Agenda  and Meeting Minutes

March 11, 2016 – Meeting Agenda and Meeting Minutes

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News

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Contact

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FUND INVESTMENT

If you are an "Illinois venture capital firm" with a track record of investing in Illinois technology businesses and meet the criteria for consideration by the Illinois Growth and Innovation Fund, please complete the submission form below.

Fill out my online form.

Info for Tech Companies

If you are a privately-held company in Illinois seeking to grow your business and connect with a fund manager participating in the Illinois Growth and Innovation Fund, please complete the submission form below.

Eligible technology businesses are companies that have as their principal function the provision of services, including computer, information transfer, communication, distribution, processing, administrative, laboratory, experimental, developmental, technical, or testing services, manufacture of goods or materials, the processing of goods or materials by physical or chemical change, computer related activities, robotics, biological or pharmaceutical industrial activity, or technology-oriented or emerging industrial activity.

Fill out my online form.
 

ADDITIONAL QUESTIONS?

Please feel free to send any questions or inquiries to the below email address:

Investments@illinoistreasurer.gov