Diversity is usually a good word when it comes to investment, and that's what the Michigan 21st Century Investment Fund is doing with its $109 million.
The fund has made a commitment to the Midwest Mezzanine Fund, a Chicago-based mezzanine fund manager. Mezzanine funds are similar to venture capital and private equity funds, except they focus on providing subordinated debt to companies looking to make the jump to the next level. This type of financing is typically used in events, like ownership changes, acquisitions, financing growth initiatives and recapitalizations.
Midwest Mezzanine plans to open an office in Michigan that will be staffed by one local employee. The company was founded in 1992 by Dave Gezon and makes most of its investments in middle America. It plans to invest in businesses that deal with consumer, commercial and industrial products, among others.
The Michigan 21st Century Investment Fund has already disbursed millions of dollars to a number of venture capital firms, such as Arboretum Ventures, Ardesta Ventures, Nth Power, Quad Partners, Relativity Fund, RPM Ventures and Venture Investors. To date, 70 percent of Michigan 21st CIF has been committed.
Source: Michigan 21st Century Investment Fund
Writer: Jon Zemke
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