| FOR IMMEDIATE RELEASE | Source:
Iowa Office of the Governor - www.governor.iowa.gov
Contacts:
Dennis Murdock, Chairman, ICIC 515-229-4548
John Shors, Counsel, ICIC 515-288-2500
Chip Cooper, Cimarron Capital Partners 319-621-2066
Matt Paul, Office of the Governor, 515-281-0173 |
Gov. Vilsack Announces Financing of Iowa Capital Investment Corporation (ICIC)
In First Investment, ICIC Makes Commitment to Prolog Capital II of St. Louis
June 29, 2005 | Des Moines, IA — Governor Vilsack announced today that the Iowa Fund of Funds has been capitalized with an initial financing commitment of $10 million and will invest part of the proceeds in its first venture capital fund, Prolog Capital II of St Louis. Vilsack made the announcement with Iowa Capital Investment Corporation of Des Moines and Cimarron Capital Partners of Oklahoma City.
Financing will be provided by lead bank West Bank of West Des Moines through a $10 million revolving loan designed to provide working and investment capital to the Fund of Funds program. Also supporting the program is Wells Fargo of Des Moines, who will finance an additional $5 million to support the investment program.
“Recent economic announcements indicated that Iowa is leading the nation in economic growth and is strengthening personal incomes,” Governor Vilsack said. “Today’s announcement is another critical step in transforming our state’s economy. I am particularly pleased that the first investment is in the life sciences.”
Prolog Capital II is the second fund managed by Prolog Ventures. Prolog is an early-stage venture capital firm specializing in life sciences and related information technologies. The firm has invested in a variety of life sciences firms in the Midwest, always focusing on technological innovation and scientific excellence.
The Iowa Fund of Funds, authorized in 2002 by the Iowa Legislature, is a $100 million venture capital development program modeled after successful efforts in Oklahoma and Arkansas. Over time, in excess of $95 million will be invested in venture capital funds agreeing to establish a presence in Iowa and actively seek Iowa investments. These funds will be selected through rigorous screening and are expected to earn a competitive rate of return comparable to industry averages over time. The loans from West Bank and others and the private investments which capitalize the program are supported by contingent tax credits authorized by the State of Iowa. The Iowa Fund of Funds is managed by Cimarron Capital Partners LLC, the same manager operating the programs in Oklahoma and Arkansas.
Dennis Murdock, Chairman of ICIC, noted “This commitment has been long awaited. The Legislature and Governor Vilsack supported this intiative by amending our enabling statute to allow the Fund of Funds to reduce capital costs and increase the availability of capital. West Bank’s commitment is the first of several which will bring funding in the program up to our maximum level of $95 million for venture investments. Wells Fargo’s participation was critically important to enable the Fund of Funds to invest in Prolog Ventures.”
“This is a good loan for our bank and a promising boost to help the Iowa economy thrive. West Bank supports the growth of the knowledge-intensive entrepreneurial economy and in particular the Iowa Fund of Funds and is pleased to be the first bank to commit to supporting this effort,” said Thomas Stanberry, Chairman and Chief Executive of West Bank.
Stephen Ringlee, Managing Director of Cimarron Capital Partners, thanked West Bank and Wells Fargo for their early efforts supporting the Iowa Fund of Funds. “These are the opening commitments in Iowa to the Fund and our firm, one of several to bring us to full investment capacity. With these funds, we expect to announce a series of partnerships with venture capital funds to help invest in promising Iowa entrepreneurs and ideas and grow our state economy.”
About the Iowa Fund of Funds
The Iowa Fund of Funds is a $100 million program organized by the Iowa Capital Investment Corporation (ICIC) and professionally managed by Cimarron Capital Partners LLC. The Iowa Fund of Funds is designed to help build a professional venture capital industry to serve Iowa entrepreneurs.
About Iowa Capital Investment Corporation (ICIC)
ICIC is the private non-profit organization authorized by Iowa statute to serve as General Partner of the Fund of Funds and provide oversight and guidance to the Fund Manager. www.investiowa.com
About Cimarron Capital Partners LLC
Cimarron is a leading national investment management firm specializing in regional private equity. The firm serves as Fund Manager of the Iowa Fund of Funds. www.cimarroncapital.com