A $95 million venture capital fund investment program was formed under the Michigan
Early Stage Venture Investment Act of 2003 (or the "Act of 2003"). VMF seeks to promote
Michigan's economic health by assisting in the creation of new jobs, new businesses and
new industries in Michigan through the creation of a fund-of-funds that would invest in
private equity managers that invest primarily in Michigan-based early stage venture
capital companies. As per the Act of 2003, the capital for the program has not be
provided by the State but raised from outside investors. To encourage investment in VMF, the
Michigan Department of Treasury agreed to provide investors with up to $200 million of
tax voucher certificates that could be used as a form of "currency" to offset any
shortfall in debt servicing by fulfilling an equivalent amount of Single Business Tax
and/or withholding tax obligations of the investors. CFIG was chosen as manager for the
program through an RFP process and was engaged in January 2006.
All of the information contained herein is presented as of August 2006 unless otherwise specified.