In 2005, the first Technology Development Account (TDA I) was established, authorizing the Treasurer’s Office to allocate up to 1% of the State Investment Portfolio to venture capital firms located in Illinois with a goal of investing in technology businesses seeking to locate, expand, or remain in Illinois.
At its core, TDA I carries a dual purpose: (1) to generate positive investment returns for the State of Illinois and (2) support the growth of Illinois technology businesses, which in turn bolsters job creation and expands the state’s economy.
TDA I utilizes a fund-of-funds approach with areas of investment including Emerging Funds, Venture Funds, and Buyout/Sub-Debt Funds. Additional diversification is achieved vis-à-vis industry, investment stage, and vintage year. As such, TDA I contains over 250 portfolio companies across 18 funds (as of June 2015).
*Job creation numbers derived from data provided by recipient funds as of January 2017
While TDA I investments will continue to wind down through 2023 (approximately), the following takeaways help underscore the performance of the program:
- Realized Gains – Since inception through March 31, 2016, the Treasurer’s Office has received distributions of $30,774,414 in capital gains and dividends.
- Market Value – As of March 31, 2016, the market value of the TDA I portfolio was $54,658,375.
- Internal Rate of Return – As of March 31, 2016, the total IRR of TDA I is 5.7% annualized, net of investment management fees. That is up from 5.6% in September 2014, and 4.9% in December 2013.