 The move is intended to spur the creation of an estimated 3,600 jobs.
Frerichs, D-Champaign, said the money will come from existing investments and is
not caught up in the state budget impasse, which largely involves general
revenue funds. The state investment is expected to attract more than $400
million in private-sector money.
The treasurer said there are two goals: supporting Illinois tech companies and
the jobs they generate, and earning investment returns for the state.
The Illinois Growth and Innovation Fund investments will be spread across 15 to
20 funds, with no more than 15 percent of the money placed in any given fund. An
advisory board will provide guidance and transparency, the treasurer said.
Speaking at a Chicago news conference, Frerichs said he gets asked, “‘How can
you, amidst this budget impasse, afford to make these investments?’”
“I think the real answer is how can we not afford to make these investments,” he
said.
As the state’s chief investment officer, Frerichs manages about $25 billion —
about $13 billion in state money, about $7 billion in college savings funds and
about $5 billion in pooled municipal resources.
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Getting a decent return on state investments means that every
dollar of income is “a dollar the General Assembly doesn’t need to
raise in taxes or a dollar they don’t need to make in painful cuts
to important services,” he said.
The funds come from technology development accounts, or TDAs, which
lawmakers authorized in 2002 (TDA I) and 2011 (TDA II), the
treasurer said in a news release.
“TDA I has been a valuable resource for retaining successful
businesses and expanding the Illinois technology ecosystem,” said
Howard Tullman, chief executive officer of 1871, the tech startup
hub based in the Merchandise Mart in Chicago.
“TDA II builds on the success of TDA I and helps ensure that
Illinois remains an attractive place for tech entrepreneurs to grow
their businesses and create new jobs,” said Tullman, who joined
Frerichs at his Chicago news conference.
Fifty South Capital, a subsidiary of the Northern Trust Corp., was
selected to administer this TDA II program following a public
bidding process, according to the treasurer’s office.
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