HomeMy WebLinkAboutAeroCatalyst Term Sheet City of Oshkosh LRF 013018
hĬƆĻĭƷźǝĻ: AeroCatalyst Fund is seeking commitments to a fund which will make investments
in seed to second stage growth companies choosing to start, locate or expand their business in
Northeast Wisconsin as part of the effort to grow an aerospace focused business cluster, one
of the most important economic development initiatives occurring in the region. The fund will
provide capital support as well as access to mentors with experience with early stage investing
and in the aerospace industry.
{ǒƒƒğƩǤ ƚŅ tƩƚƦƚƭĻķ tƩźƓĭźƦğƌ ĻƩƒƭ
CǒƓķ {źǩĻʹ $1,000,000 in Oshkosh ($3-4,000,000 fund size)
LƓǝĻƭƷƒĻƓƷƭʹ $25,000-400,000 in seed through second stage companies with
significant growth potential in or supportive of the aerospace
industry which have chosen to start, locate or expand in Northeast
Wisconsin as part of the aerospace business cluster; city of Oshkosh
funds would be earmarked for Oshkosh companies
{ƷƩǒĭƷǒƩĻʹ Non-profit, evergreen fund; returns from investments will be
recycled back into the fund, forming a permanent source of capital
CǒƓķ Dƚğƌƭʹ 1. Develop a dedicated, permanent source of capital for the
regional aerospace cluster
2. Increase the number of new and expanding aerospace businesses
which will in turn create jobs and provide entrepreneurship and
innovation support critical to the regional aerospace cluster
3. Create returns sufficient to build an evergreen fund which will
continue to invest in additional companies, with the option to
return capital to original contributors or for other purposes as
determined by the board of directors, once a threshold size of the
fund has been reached
tƚƷĻƓƷźğƌ /ƚƓƷƩźĬǒƷƚƩƭʹ Communities and counties part of the regional aerospace cluster
initiative, Wisconsin Economic Development Corporation; private
foundations, and individuals with an interest in aerospace and/or
economic development of the region; funds may be earmarked for
expenditure in a specific geographic region
election
/źƷǤ ƚŅ hƭŷƉƚƭŷʹ Proposed contribution of $250,000, but can be called over 5 years
DƚǝĻƩƓğƓĭĻ ğƓķ
ağƓğŭĻƒĻƓƷʹ The fund will have a board of directors, investment committee and
fund manager.
The board of directors shall be 9-15 members, chosen by the
contributors to the fund with each $100,000 commitment
representing one unit or vote. The board will approve the annual
budget, oversee fund management, appoint the investment
committee but will not have control over investment decisions.
The investment committee will be 3-5 members, comprised of
experienced early stage investors and one or more aerospace
industry experts and will be responsible for evaluating investment
opportunities, making investment decisions, mentoring portfolio
companies and assisting with investment exits.
The fund will have a part time fund manager to manage day to day
fund operations.
hƦĻƩğƷźƚƓğƌ 9ǣƦĻƓƭĻƭ: Operational expenses will be covered by a 2.5% annual
administration fee, included in the initial commitment; sale of
WEDC tax credits may enable to the fund to reduce the
administration fee in future years
For more information on AeroCatalyst Fund, please contact
Elizabeth Hartman
920.216.9353
ehartman@aerocatalystfund.org