TROY – Venture Michigan Fund II announced Monday it has made a $15 million investment in Flagship Ventures Fund IV, which invests in early-stage and later-stage companies. The Massachusetts company does not yet have a Michigan office.
Credit Suisse?s Customized Fund Investment Group manages VMF II, which will make investment commitments totaling $120 million to venture capital funds during the three-year investment period. This was the fourth investment commitment VMF II has made. Credit Suisse is headquartered in Zurich, Switzerland, with US headquarters in New York.
The VMF II raised a 14-year debt financing from Stanton guaranteed by $250 million of tax vouchers provided by the State of Michigan, which provided the $120 million used by the fund of fund to invest in venture capital managers that invest primarily in Michigan-based early stage companies, according to the Michigan Early Stage Venture Investment Act of 2003.
VMF currently consists of two fund-of-funds. The Venture Michigan Fund I, Limited Partnership (“VMF I”) is a $95 million fund launched in 2006. VMF I is fully committed and has invested in eleven venture capital funds.
?We?re thrilled the Venture Michigan Fund II continues to get attention from experienced fund managers from across the country,? said Sean O?Donnell, of the Credit Suisse CFIG Michigan investment office. ?We strongly believe national funds play a critical role in helping to promote Michigan as a great place to do business. We?re excited to start working with Flagship Ventures and their highly-skilled team to boost and diversify Michigan?s economy.?
Credit Suisse?s Customized Fund Investment Group is led by Global Head Kelly Williams. In addition to the $120 million VMF II, CFIG manages the $95 million Venture Michigan Fund I, the $109 million Michigan 21st Century Investment Fund programs and co-manages with Beringea LLC the $185 million Invest Michigan Growth Capital Partners Fund and the $130 million Invest Michigan Mezzanine Fund. In total Credit Suisse manages more than $500 million of Michigan-target investment initiatives.
Cambridge, Mass., based Flagship Ventures operates through two units: VentureLabs which invents and launches transformative companies, and Venture Capital, which finances early-stage companies. Flagship Ventures manages more than $900 million in capital, including an investment in Michigan-based Accuri Cytometers. Flagship invests in therapeutics, medical technologies, and sustainability/clean technology. The company says it plans to open a Michigan office in the first half of 2012.
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