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CHS and VT Foundation Establish Investment Consortium |
CHS and VT Foundation Establish Investment Consortium
CARILION HEALTH SYSTEM AND THE VIRGINIA TECH FOUNDATION ESTABLISH PRIVATE EQUITY/VENTURE CAPITAL FUND AND INVESTMENT CONSORTIUM TO FUND BUSINESSES IN SOUTHWEST VIRGINIA -- $55 million available to spur economic development in Roanoke and New River Valleys -- -- Investment fund managed by Radford, Virginia-based Third Security, LLC -- ROANOKE, VA, (February 19, 2004)– As part of their commitment to regional economic development, Carilion Health System and the Virginia Tech Foundation have established a private equity/venture capital fund and an investment consortium that will make investments in promising companies willing to initiate operations or relocate their business to the Roanoke and New River Valleys. These two important steps will make approximately $55 million dollars in investment capital available to companies who operate in this region. Roanoke-New River Valley Investment Fund Carilion, the Virginia Tech Foundation and Third Security LLC, the Radford-based private investment and advisory firm, have created the Roanoke-New River Valley Investment Fund, in order to deploy a portion of their respective investment portfolios to generate economic growth in southwest Virginia. The fund will be governed by a local board of directors and will be managed by Third Security. As fund manager, Third Security will provide its expertise, people and resources to guide investments with investment return and regional economic development as primary objectives. Both Carilion and the Virginia Tech Foundation currently make investments to serve their long-term needs. Carilion invests money that will eventually be used to replace and upgrade equipment and facilities. The Foundation invests its endowment funds to provide funding to Virginia Tech. Each organization invests in a variety of ways, including through private equity funds. Carilion and the Foundation will each transfer $5 million of existing private equity investment capital into the Roanoke-New River Valley Investment Fund. Third Security and its affiliates will invest $2 million in the Fund. It is expected that qualified private investors will invest up to an additional $8 million, creating a Fund pool of $20 million. Third Security will commit another $10 million to the new investment consortium. "Both Carilion and the Virginia Tech Foundation invest in private equity funds that provide returns for our long-term needs, but do nothing to stimulate economic development in the region," said Edward G. Murphy, M.D., Carilion President and CEO. "By creating a fund that will invest in companies operating in our region we will stimulate additional economic activity and job creation. With Third Security participating in and managing the investment fund, we have great confidence in the success of this venture." "We always attempt to make wise investments with the Foundation’s endowment fund, and this strategy meets that obligation and has the potential to help not only the University but our entire region," said Virginia Tech President Charles Steger. "It is our objective that this fund will assist in the further development of the Virginia Tech Corporate Research Center and our technology transfer program." "The Roanoke-New River Investment Fund promises to spur economic development in a part of the country with tremendous unrealized potential,” said Randal J. Kirk, Chairman and Senior Managing Director of Third Security. "For the Roanoke and New River Valley region, this blending of resources will help ensure that companies in the area have the capital necessary to develop and thrive," Mr. Kirk concluded. Valleys Investment Consortium Roanoke-New River Investment Fund has joined:
in forming the Valleys Investment Consortium to attract more investment dollars and gain access to additional companies interested in moving to or starting operations in southwest Virginia. Each Consortium member will make a portion of its investment fund available for Consortium projects. By intentionally selecting groups who cover a full range of investment strategies (from start up and early stage investments to financing more mature companies to outright mature company buy-outs), the Consortium will meet the needs of most any company, regardless of its stage of development. It will also provide a broad range of opportunities for the region. Consortium Facts
The Roanoke-New River Investment Fund and Valleys Investment Consortium will begin evaluating investment opportunities immediately. # # # About Carilion Health System Carilion Health System is a $1 billion healthcare company serving approximately 1 million people in Western Virginia. Carilion is a comprehensive, integrated system employing more than 9,000 people at 9 not-for-profit hospitals, 60 physician practices and primary care centers. About Virginia Tech Foundation The Virginia Tech Foundation serves Virginia Tech by generating funding from private sources, aggressively managing its assets, and undertaking project initiatives in support of University programs. About Third Security, LLC Third Security is an independent, private investment and advisory firm formed in 1999 to manage investments in public and private companies. Currently, the firm has 50 employees, approximately $800 million under management and leverages its people, expertise and capital to guide investments and companies to higher levels of performance. |