Illinois General Assembly

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Full Text of SB0107  97th General Assembly


Rep. Daniel Biss

Filed: 5/5/2011





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2    AMENDMENT NO. ______. Amend Senate Bill 107 on page 4, by
3replacing line 1 with the following:
4"Illinois. Any fund created by an Illinois venture capital firm
5in which the State Treasurer places money under this Section
6("TDA II-Recipient Fund") shall invest a minimum of twice (2x)
7the aggregate amount of investable capital that is received
8from the State Treasurer under this Section in Illinois
9companies during the life of the fund. "Illinois companies", as
10used in this Section, are companies that are headquartered or
11that otherwise have a significant presence in the State at the
12time of initial or follow-on investment. Investable capital is
13calculated as committed capital, as defined in the firm's
14applicable fund's governing documents, less related estimated
15fees and expenses to be incurred during the life of the fund.
16    Any TDA II-Recipient Fund shall also invest additional
17capital in Illinois companies during the life of the fund if,



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1as determined by the fund's manager, the investment:
2        (1) is consistent with the firm's fiduciary
3    responsibility to its limited partners;
4        (2) is consistent with the fund manager's investment
5    strategy; and
6        (3) demonstrates the potential to create risk-adjusted
7    financial returns consistent with the fund manager's
8    investment goals.
9    In addition to any reporting requirements set forth in
10Section 10 of this Act, any TDA II-Recipient Fund shall report
11the following additional information to the Treasurer on a
12quarterly basis for all investments:
13        (1) the names of portfolio companies invested in during
14    the applicable investment period;
15        (2) the addresses of reported portfolio companies;
16        (3) the date of the initial (and follow-on) investment;
17        (4) the cost of the investment;
18        (5) the current fair market value of the investment;
19        (6) for Illinois companies, the number of Illinois
20    employees on the investment date; and
21        (7) for Illinois companies, the current number of
22    Illinois employees.
23    If, as of the earlier to occur of (i) the fourth year of
24the investment period of any TDA II-Recipient Fund or (ii) when
25that TDA II-Recipient fund has drawn more than 60% of the
26investable capital of all limited partners, that TDA



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1II-Recipient Fund has failed to invest the minimum amount
2required under this subsection (d) in Illinois companies, then
3the Treasurer shall deliver written notice to the manager of
4that fund seeking compliance with the minimum amount
5requirement under this subsection (d). If, after 180 days of
6delivery of notice, the TDA II-Recipient Fund has still failed
7to invest the minimum amount required under this subsection (d)
8in Illinois companies, then the Treasurer may elect, in
9writing, to terminate any further commitment to make capital
10contributions to that fund which otherwise would have been made
11under this Section.".