Oregon State $100 Million Fund of Funds Venture Investment Allocations Stay Local

The first equity firms selected to receive state-directed venture funds share a firmly embedded Portland stamp.

Credit Suisse First Boston http://www.csfb.com, charged with allotting $105 million in money earmarked through the Oregon Investment Fund program http://www.oregoninvestmentfund.com/ , gave the first $34 million round to four equity investment companies that are either based in Portland or that host local offices. Buerk Dale Victor http://www.bcvllc.com/ , Cascadia Partners , Evergreen Pacific Partners http://www.eppcapital.com/ and Riverlake Partners http://www.riverlakepartners.com/ will in turn invest the dollars in promising local companies.

Terms of the agreements, including how much each company received, have yet to be finalized.

David Almodovar, a CSFB vice president, said a total of nine companies will likely be selected to dole out the funds. CSFB will announce another round this summer; the final round will occur early next year.

The venture firms were selected from 27 applicants.

Andy Giegerich
Business Journal staff writer

Full Story: http://www.bizjournals.com/industries/banking_financial_services/venture_capital/2005/05/16/portland_story6.html

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MONEY FLOWING IN OREGON: It has been nearly two years since the Oregon state Legislature approved a $100 million program to help jumpstart new businesses in the state.

But the money is finally starting to make its way into the hands of venture capitalists and private equity firms, including two Seattle-based firms.

Buerk Dale Victor and Evergreen Pacific Partners recently received money from the Oregon Investment Fund, a $105 million "fund of funds" managed by investment bank Credit Suisse First Boston. They join Portland’s Riverlake Partners and Cascadia Partners as the inaugural members in the state-backed program. Together, the four firms — all of which must maintain an office in Oregon and commit to finding investments there — will receive $34 million.

An additional four to five firms will receive $48.5 million in the next stage, with Credit Suisse First Boston managing the remaining $22.5 million.

David Almodovar, a vice president at Credit Suisse First Boston, said that more than 150 investment firms expressed interest in the program and 27 submitted formal proposals.

State-backed venture capital programs have had a mixed record. But Almodovar is confident that Oregon’s approach will pay off.

"Programs in other states are often based on economic development," said Almodovar. "Ours is not. It is focused on economic return."

Though the Seattle firms are not required to invest in Oregon, Almodovar doesn’t think it will be difficult for them to find at least one or two high-quality deals in the state.

By JOHN COOK
SEATTLE POST-INTELLIGENCER REPORTER

http://seattlepi.nwsource.com/venture/224077_vc13.html

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Oregon Investment Fund Issues Questionnaire to Venture Capitalists Seeking to Participate in New $105 Million Fund http://www.matr.net/article-12389.html