According to Silicon Alley Insider, the Florida Growth Fund has launched with $250 million in capital earmarked for venture capital investments in Florida. Funding was provided by the State of Florida Retirement Pension Fund under special legislation. This is a good decision by the State of Florida given the scarcity of venture money in Florida and something I have been advocating for the last ten years. In my plan I always thought the fund should be managed by a first class VC who would set up operations in Florida. Think Kleiner Perkins, Sequoia, etc.
The State of Florida appointed Hamilton Lane (who ?), an institutional money manager based in Pennsylvania, to run the fund. Hamilton Lane is an institutional money manager that specializes in the private equity asset class and offers discretionary and non-discretionary services. In other words, they pick private equity firms to put client money with or make the decision to co-invest client monies in PE firm deals. The good news is the State of Florida did not pick a three man firm in Boca Raton to manage the firm.
A few concerns:
- How much Florida deal flow will a firm near Philadelphia have? Hope they are not relying on Florida politicians to send them deals.
- If Hamilton Lane specializes in private equity then they are likely to fund late stage, near IPO venture deals; Florida does not lack for late stage funding and Hamilton Lane will just be another source of capital in a market that is already robust.
- Hamilton Lane does not appear to have significant experience in seed and early stage investing, which is where Florida badly needs capital.
Let me not be too negative. I applaud the state government for organizing the fund. Let's follow developments and see what kind of deals this new fund will do. Wonder if they would be interested in a medical device company I am representing?
Note: The Florida Growth Fund website is currently just a placeholder.
Miami, FL
