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What is the InvestMichigan! Program?
The InvestMichigan! Program (the “Program”) is an initiative that makes capital available to successful entrepreneurs who create jobs in Michigan. Its principal goals are to generate strong returns for investors, provide assistance to growing Michigan companies, attract world class investment in the outstanding companies already present in Michigan, and encourage investors to locate their portfolio companies in Michigan. Investments are made across a broad range of industry sectors and investment stages, ranging from early-stage venture through mature companies.
Is the InvestMichigan! Program paid for with public money or taxes?
No, the Program is a private limited partnership of qualified institutional investors.
What requirements must be met by a company to receive an investment from the InvestMichigan! Program?
In addition to other business and financial requirements, companies receiving funds must:
- Be domiciled in Michigan;
- Have their corporate headquarters in Michigan;
- Have a significant percentage of their employees based in Michigan, or
- Be in the process of planning an expansion in and/or relocation to Michigan
What are the objectives of the InvestMichigan! Program?
- Retain and attract emerging growth businesses to Michigan;
- Nurture portfolio companies at each phase of development;
- Enhance Michigan’s reputation for entrepreneurship;
- Attract leading regional and national private equity and venture capital firms to the State, and
- Further develop the State’s entrepreneurial ecosystem
Why is the InvestMichigan! Program split into three pools of capital?
The InvestMichigan! Program has been divided into three pools of capital in order to ensure that high quality companies at different stages of development have capital within Michigan to support their growth.
What is the target investment of each pool of capital?
- Growth Capital Funds: Target lead and co-investment opportunities in venture capital and small buyout stage companies with growth characteristics across a range of sectors. The Growth Capital Funds are managed by Beringea and GCM Grosvenor Private Markets.
- Michigan Opportunities Fund: Targets lead investment opportunities in buyouts and growth equity investments in middle market companies with a strategy of encouraging out-of-state companies to expand in or relocate to Michigan. The Michigan Opportunities Fund is managed by Glencoe Capital.
- Mezzanine Fund: Targets mezzanine debt and equity investment opportunities in lower middle market Michigan companies. Formed in partnership with the U.S. Small Business Administration, the Fund is managed by GCM Customized Fund Investment Group and Beringea.
Who are the Managers of the InvestMichigan! Growth Capital Funds
Do the Managers of the InvestMichigan! Growth Capital Funds have a presence in Michigan?
Yes. Beringea is headquartered in Farmington Hills and GCM Grosvenor Private Markets has a regional office in Birmingham.
What is the Business Leadership Council?
The Business Leadership Council is a group of senior Michigan business leaders (“Council Members”) that will advise, nurture, and allow portfolio companies to leverage their business relationships. Additionally, Council Members may sit on the boards of portfolio companies and, in special cases, provide interim leadership for portfolio companies. Members include Business Leadership Council Chairman Peter Karmanos, Jr., Executive Chairman, Compuware, and:
- Joseph Hohner, EVP, Blue Cross Blue Shield of Michigan
- George Jackson, CEO, Detroit Economic Growth Corporation
- Mark Murray, President, Meijer, Inc.
- Jim Herbert, Chairman & CEO, Neogen Corp
- Mark Reuss, GM VP & President North America, General Motors
- Sandra Pierce, former President & CEO, Charter One Bank
- Jim Nicholson, President & CEO, PVS Chemicals
- Beth Chappell, CEO, Detroit Economic Club
- Dan Gilbert, Chairman, Quicken Loans
- Andy Dillon, State Treasurer, Michigan Department of Treasury
What are the roles and responsibilities of Council Members?
Council Members are expected to provide:
- Advice — Council Members provide high-level strategic guidance on potential investment opportunities, sharing their global network and unique insight.
- Nurturing and Mentorship — Council Members serve as a resource to young management teams as they develop and execute their strategy, providing portfolio companies with unparallel access to the extensive business experience of the Council Members. In special cases, Council Members may take management roles or sit on portfolio company boards where their experience would help to create value.
- Business Relationships — Council Members provide portfolio companies with the opportunity to leverage their local and international business relationships. They may make introductions to key business partners and customers or share views with management teams on strategies to encourage business development.