Getting to Know the Utah Fund of Funds
Part II: Structured for Maximum Impact
By Jeremy Neilson and Kimball Thomson
<< Read the first article: Part I: A Local Habitation and a Name
>> Read the third article: Part III: A Portfolio with Purpose
>> Read the fourth article: Part IV: The Importance of the Utah Fund of Funds: Entrepreneurial Voices
>> Read the fifth article: Part V: Progress and Future of the Utah Fund of Funds
The first installment of this series provided an overview of the UtahFoF. (It can be accessed on the UtahFoF website under "In the News" or through the following link: http://www.utahfof.com/ufoff_story.html.) The present installment will describe the program's structure and financing.
Financing and Structure
The UtahFoF is financed by a third party, and is structured to be financially self-sustaining. Its first $100-million round of the Utah Fund of Funds was financed by Deutsche Bank. The program is supported by contingent tax credits from the State of Utah, which would be used only in the highly unlikely event of a shortfall.
Structure
The Utah FoF is governed by two boards that oversee and report on the fund's activities, which are primarily executed by the program's staff, led by the UtahFoF managing director, with support from a professional investment advisor firm.
The Utah Capital Investment Board (UCIB) is a State of Utah government board with membership determined by government position or State Governor appointment. UCIB is the state oversight board responsible for overseeing the Utah tax credits, and plays a crucial role in overseeing Utah FoF financing and in reporting program status to the Utah legislature. Current UCIB board members include:
- Edward Alter: Treasurer, State of Utah. Appointed to the UCIB by legislative statute, Alter also serves as president of the Utah State Retirement Board.
- Lonnie M. Bullard: President & CEO of Jacobsen Construction Company; former senior partner, the Boyer Company.
- Robert P. Majka: CEO, Marlin Bank. Majka was formerly executive VP of Associates Corporation, one of the nation's largest sub-prime lenders, and president & CEO of Associates Capital Bank, which later merged with Citigroup.
- Alexander L. Searl: Retired executive. Searl served in a variety of industry leadership capacities, including executive positions with Paradigm, Crown Energy Corp., Theratech, American Stores and Hercules.
- Jason Perry: Executive Director, Utah Governor's Office of Economic Development, which oversees economic development, the Office of Tourism and the Utah Film Commission.
The Utah Capital Investment Corporation (UCIC) is a non-profit corporation with a public charter to approve Utah FoF financing in partnership with UCIB, approve all Utah FoF investments, and choose and manage the program's staff and outside investment advisor. All UCIC board members volunteer their time and expertise, without receiving pay. The UCIB consists of prominent Utah industry leaders. Current members include:
- Will West (chairman): Co-founder, president & CEO of Control4, a prominent manufacturer of home automation products, and co-founder of STSN (now iBAHN) and PHAST.
- Geoff Woolley: Founding partner of Dominion Ventures, and founder and former executive chairman of European Venture Partners.
- Frank S. Trumbower: retired CEO of Cambridge Technology Partners, a prominent national VC firm, and former chief economist at the U.S. Office of Economic Opportunity and of the African Development Corporation.
- Richard Nelson: president & CEO of the Utah Technology Council (UTC), and president of the national Council of Regional Information Technology Associations.
- Peggy Wallace: Vice President, America First Credit Union, former Utah State Representative and sponsor of the Utah Fund of Funds legislation.
The Utah Fund of Funds Investment Advisor is a professional firm chosen by the UCIC through a formal request for proposals (RFP) process. The advisor's primary duties include: finding and evaluating potential investments; performing due diligence; providing investment recommendations to the UCIC board; and assisting the Utah FoF in community outreach programs and events.
The investment advisor for the program's Fund I is Fort Washington Capital Partners Group, with headquarters in Cincinnati, OH and full-time offices in Utah led by senior staff. Fort Washington's Utah office is led by regional director and vice president Peter Jarman, an experienced business professional who has held executive positions at Roundy, Inc., Parametric Technology Corp., Oculus Technologies, Campus Pipeline (now SunGard Higher Education) and Icon Health and Fitness.
For more information about the Utah Fund of Funds, visit Http://www.utahfof.com or call Jeremy Neilson at 801.521.3072.
Jeremy Neilson serves as managing director for the Utah Fund of Funds. Kimball Thomson is an Alpine-based freelance writer, and president and CEO of Next Phase Communications, an integrated public relations and marketing firm that represents the Utah Fund of Funds.
