LANSING – The Michigan Strategic Fund has approved a $22.5 million investment in a new private equity fund that will provide growth funding for Michigan automotive suppliers, the Michigan Economic Development Corporation announced Tuesday.

The loan funding under the MEDC Capital Conduit Program went to Grow Michigan Holdings, LLC, to be invested as Michigan Capital Partners, a newly created private equity fund. MCP is a collaboration of public and private funding, and will be capitalized by private investors from across the state to provide growth funding for Tier 2 and Tier 3 automotive and transportation suppliers with a presence in Michigan.

The targeted private investment fund will total $125 million, creating more than $4.50 in private investment for each public dollar invested, the MEDC said in a statement about the actions by the MSF. It will make investments in companies with $20-200 million in revenue in the transportation value chain: machining, forming, tool and die making, supply chain support and technology.

Companies considered for the fund’s investments will be headquartered or have operations in Michigan with plans to expand their facilities and create new jobs in the state, the MEDC said.

“Today’s Strategic Fund actions will mean new support for expanding Michigan’s small businesses and greater economic opportunities for people across Michigan,” MEDC President and CEO Michael Finney said. “Our economic recovery is demonstrating increasing momentum thanks to our improved business climate and continued new job-creating investments. Today’s investments will fuel new economic activity that will show benefits across Michigan.”

FULLERTON TOOL COMPANY: Fullerton Tool Company will open a new manufacturing facility in Thomas Township in Saginaw County expected to generate $8 million in new private investment and add 58 new jobs, earning a $400,000 grant.

The company plans to construct its second Saginaw County manufacturing facility in the Great Lakes Technology Park due to high demand for its products of solid carbide cutting tools usined in a variety of industries, including medical, aerospace, automotive, power generation, heavy equipment, recreation, firearms, and mold and die.

South Carolina, Tennessee and Kentucky solicited the company’s investment, the MEDC said, but it will stay in Michigan. Saginaw County is also providing 35 acres of shovel-ready property to support the project.

“Fullerton is an important employer in Saginaw County, and its investment means Michigan residents will get good jobs that could have gone to other states,” Mr. Finney said in a statement. “It is through the efforts of Saginaw County and Saginaw Future that this expansion is taking place, and we are pleased to support the collaboration.”

FOUNDERS BREWING: The MSF also awarded a $250,000 grant to Canal Street Brewing Co., LLC, also known as Founders Brewing Co. The company is expanding its property on Grandville Ave. SW in Grand Rapids, investing $40.4 million and creating 72 jobs.

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