TNInvestco Consortium LLC, comprised of FourBridges Capital Advisors and Miller & Martin PLLC, today announced the sale of $60 million of TNInvestco tax credits to insurance companies on behalf of TNInvestco funds MB Venture Partners, Solidus Company and Tennessee Angel Fund.
In 2009, the State of Tennessee authorized $120 million of insurance premium tax credits for the TNInvestco Program. In June 2010, the state legislature authorized an additional $80 million of TNInvestco tax credits. MB Venture Partners, Solidus Company and Tennessee Angel Fund were awarded $60 million of these credits for investment in Tennessee-based small businesses to stimulate innovation, entrepreneurship, job growth and general economic development in Tennessee.
TNInvestco Consortium, LLC was formed to provide Tennessee-based venture capital groups with an efficient platform to participate in the State's innovative TNInvestco Tax Credit Program. TNInvestco Consortium, LLC provided investment banking and legal services to all of its members. FourBridges Capital Advisors provided investment banking services, and Miller & Martin provided legal counsel to Consortium members.
Through the TNInvestco Consortium, MB Venture Partners, Solidus Company and Tennessee Angel Fund engaged FourBridges Capital to contact prospective purchasers and initiate a competitive process for the purchase of the credits.
"By using a professional process to find each and every buyer, we were able to maximize the proceeds from the sale of the credits and provide more money for investment in Tennessee's promising companies," said Gary Stevenson, managing partner at MB Venture Partners.
"FourBridges and Miller & Martin did a fantastic job on this transaction. They worked hard to identify suitable buyers and closed the sale quickly and effectively, allowing us to get to work on funding Tennessee-based early stage ventures," said Sid Chambless, managing partner of Tennessee Angel Fund.
In addition to their invested capital, the three funds will provide unique expertise to entrepreneurs and small businesses. MB Venture Partners will continue to invest in Tennessee's burgeoning biomedical industry, having already invested in companies such as GTx, BioMimetic Therapeutics and Protein Discovery.
Tennessee Angel Fund will use the funds generated to co-invest with its statewide network of angel investors. Angel investors, often successful entrepreneurs themselves, provide both capital and guidance to growing companies at a critical stage in their lifecycle.
Solidus Company will continue its strategy of investing in early stage companies with disruptive business models, such as onFocus Healthcare, Capital Confirmation, and Motricity.
FourBridges conducted an extensive process to identify insurance companies that could use the TNInvestco tax credits, initiate discussions with their investment professionals, and educate them on the benefits and structure of the program.
"The uniqueness of Tennessee's program presented a number of challenges which the Consortium and our clients had to work through during the process," said Andy Stockett, managing director at FourBridges Capital Advisors. "FourBridges is very pleased to have played a key role in Tennessee's innovative TNInvestco program, and we appreciate the opportunity to work with MB Venture Partners, Tennessee Angel Fund and Solidus as well as the State of Tennessee."
About FourBridges Capital Advisors (Member FINRA/SIPC)
FourBridges Capital, a middle market investment banking firm based in Chattanooga, TN, represents business owners in selling their companies, acquiring companies, or accessing capital for growth. FourBridges Capital leverages the extensive capital markets experience of its team as well as the CEO and CFO-level operating experience of its partners to achieve superior results for its clients.
About Miller & Martin PLLC
Miller & Martin is a leading Southeastern law firm with almost 200 attorneys in three cities with clients ranging from individuals to multi-national corporations. To meet the needs of their diverse client base, Miller & Martin attorneys dedicate themselves to understanding the unique issues facing each client. As a full-service firm with many specialized practice groups, they can address virtually any legal challenge.
Contacts:
FourBridges Contact
Andy Stockett, 423-266-6979
astockett@fourbridgescapital.com
or
Miller
& Martin Contact
Roddy Bailey, 423-785-8366
rbailey@millermartin.com