Bank of Arkansas Finances $56M
by June 7, 2004 12:00 am 59 views
The Arkansas Development Finance Authority (ADFA) fund manager selected the Bank of Arkansas to provide financing of $56 million to help capitalize the new $70 million Arkansas Institutional Fund.
“We contacted every commercial bank in the state and they came up with the winning bid,” said Mike Tharp, managing director of USPSI LLC, the managing member of the fund.
The private equity fund-of-funds announced in September that it was actively seeking to make commitments to private equity, seed and venture capital firms.
USPSI was selected to structure, capitalize and manage the fund through a national competition conducted by the ADFA. USPSI built the Oklahoma Capital Investment Board program in the 1990s and is working on similar programs for other states.
The Arkansas Institutional Fund, with support from ADFA, will invest in professionally managed private equity, seed and venture capital funds. These investment funds are expected to provide capital to new, growing and restructuring businesses in Arkansas.
Jeff Dunn, president and CEO of Bank of Arkansas, said in a prepared statement, “The Arkansas Institutional Fund will help expand the venture capital industry in the state and provide businesses with equity and near-equity investments.”
The program is expected to eventually provide over $420 million of new financing for Arkansas companies.
Bank of Arkansas’ commitment is backed by a guaranty from the ADFA.