NC Commits $250M for Second North Carolina Innovation Fund

State Treasurer Janet Cowell announced a second North Carolina Innovation Fund (NCIF), a $250 million commitment to North Carolina-centered companies. Approximately $165 million will be designated to make co-investments in growth stage companies with the potential for a risk-adjusted, high return on investment (ROI) – 20 percent ROI. The second NCIF will make targeted investments into a diverse set of industries that include key sector identified by the state as growth sectors. The remaining funds, approximately $83 million, will have a multi-stage investment focus (e.g., venture, growth, buyout, and mezzanine funding), according to the Triangle Business Journal. The fund will be managed by the Charlotte office of Grosvenor Capital Management – an independent alternative asset management firm – and should start making investments within the coming months.                                                                                                   

In her announcement of the second NCIF, Treasurer Cowell touted the success of the first NC Innovation Fund, which was launched five years ago. She reported that $185 million of the original $232 million investment has been committed to eight private equity managers and 12 companies through co-investments alongside private equity managers. The first NCIF portfolio reports a 20 percent internal rate of return with three successful exits to-date and multiple valuation increases since investment. Similar to the first NCIF, the second NCIF will be funded via the North Carolina pension fund. Read the announcement…