Technology Development Account I

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Overview

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.

Job Creation Attributable to TDA I

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 December 2017).

 

*Job creation numbers derived from data provided by recipient funds as of January 2017

 

Performance

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 December 31, 2017, the Treasurer’s Office has received distributions of $46,427,655 in capital gains and dividends.

 

  • Market Value – As of December 31, 2017, the market value of the TDA I portfolio was $47,909,183

 

  • Internal Rate of Return – As of December 31, 2017, the total internal rate of return (IRR) of TDA I is 6.3% annualized, net of investment management fees.  

Graph showing increased rate of return under TDA I program