Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Florida Growth Fund Investments Have Provided Over $300 Million in Distributions to the FRS; Fund Managers Continue to Seek New Investment Opportunities

Report 18-02, January 2018

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Report Summary

  • As of June 30, 2017, the Florida Growth Fund program had invested $564.4 million in 41 technology and growth companies and 31 private equity funds. Investments were dispersed across 13 counties, with amounts ranging from $6.8 million in Manatee County to $165.2 million in Palm Beach County. Since its inception, Florida Growth Fund I has experienced a net internal rate of return of 12.6% and has distributed $294.8 million to the Florida Retirement System as of June 30, 2017.
  • Due to the success of Florida Growth Fund I, the State Board of Administration's managers authorized the initiation of Florida Growth Fund II, which made its first commitment in December 2014. To date, Florida Growth Fund II has made eight fund commitments and seven direct investments, totaling $125.6 million in capital. Florida Growth Fund II had generated a 14.7% net internal rate of return as of June 30, 2017, and distributed $9.2 million to the Florida Retirement System. This was the first year of positive returns since Florida Growth Fund II was initiated.
  • The program's investments resulted in reported economic benefits to the state. Companies that received Florida Growth Fund program investments reported creating 16,882 jobs as of June 30, 2017. The companies also reported paying an average annual salary of $77,808 for those jobs created over the past year; however, salaries varied widely, from $17,680 to $750,000. In addition, 13 companies and 14 private equity funds reported making $178.6 million in capital expenditures between June 30, 2016, and June 30, 2017, bringing total capital expenditures to $545.9 million since the fund's inception.

Related Reports
  1. Florida Growth Fund Investments Have Provided Over $200 Million in Distributions to the FRS; Fund Managers Continue to Seek New Investment Opportunities
    Report 16-08 December 2016
  2. Florida Growth Fund Expands and Diversifies Investments
    Report 15-14 December 2015
  3. Florida Growth Fund Investments Continue to Add Jobs and Provide Distributions to the FRS
    Report 14-11 December 2014
  4. Florida Growth Fund Investments Add Jobs and Result in Distributions to the Retirement Fund
    Report 13-11 December 2013
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
growth, technology, Florida Growth Fund, Florida Retirement System, investments, Hamilton Lane, due diligence, private equity, co-investments, direct investments, economic development, economic benefits, pension, management fees, jobs, capital, recapitalization