NJEDA puts out call for investment managers to oversee $150M in funding

Matthew Fazelpoor//February 13, 2023

NJEDA puts out call for investment managers to oversee $150M in funding

Matthew Fazelpoor//February 13, 2023

The New Jersey Economic Development Authority (NJEDA) last week issued Notices of Investment Opportunities (NIOs) for four distinct funds with $150 million in capital available to support investment in the Garden State.

NJEDA said it is seeking experienced investment managers to manage and deploy the capital funding, with $130 million of it deriving from the U.S. Department of Treasury’s State Small Business Credit Initiative (SSBCI) and an additional $20 million from the Fiscal Year 2022 and 2023 budgets.

The four investment strategies the NJEDA issued NIOs for include:

  • Socially & Economically Disadvantaged Individuals (SEDI) Seed Fund — a $20 million limited partner investment that will focus on investing in one or more venture funds to support seed and early-stage startups substantially located in New Jersey with SEDI owners
  • Black and Latino Seed Fund — a $20 million fund that will drive capital to innovative Black- and Latino-owned enterprises
  • Blended Capital Fund — a $50 million fund that supports the purchase of eligible loans from Community Development Financial Institutions (CDFIs) serving the Garden State
  • Life Science/Health Care Fund — a $60 million limited partner investment fund that will invest in one or more venture funds to support early-stage New Jersey life science and health care businesses

The Authority said that these funds are a key element to Gov. Phil Murphy’s plan to create the most diverse and inclusive innovation economy in the nation.

NJEDA Chief Executive Officer Tim Sullivan

“Injecting capital into several high-wage, high-growth sectors is one of the most critical elements of our ongoing efforts to strengthen New Jersey’s business environment and create opportunities for small business owners and entrepreneurs,” said NJEDA Chief Executive Officer Tim Sullivan. “Funding allocated by Gov. Murphy and the New Jersey Legislature, as well as monies provided from the federal government, position us well to help finance growing businesses, attract new firms, and increase job opportunities.”

Removing obstacles

Office of Diversity, Equity, Inclusion, and Belonging Director Jayne Johnson said that New Jersey’s diversity is one of its greatest assets, stressing there is a moral obligation to ensure that that diversity is reflected in the business and innovation communities.

“The investment managers selected through the NIOs announced today will be in terrific position to help the NJEDA drive funding to small businesses and innovative, high-growth companies owned by diverse entrepreneurs throughout the state,” said Johnson.

Michelle Bodden, NJEDA chief diversity and inclusion officer, said they are working to remove the systemic obstacles faced by far too many entrepreneurs of color and female founders seeking capital.

“The unique investment strategies we plan to launch this year will strengthen our ability to address and offset challenges diverse entrepreneurs and small business owners face as they grow their enterprises,” said Bodden. “It is particularly fitting that we are taking important steps during Black History Month toward launching the Black and Latino Seed Fund as we honor the contributions of the Black and Brown community in the innovation and venture capital space.”

“The NJEDA has a noteworthy history of committing millions of dollars into funds that have successfully fueled the growth of New Jersey small businesses and early-stage companies,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Now, leveraging the expertise of investment managers we select, we’ll able be able to exponentially multiply the impact our dollars will have on businesses statewide, with a particular focus on supporting minority- and women-owned companies and businesses in strategic sectors.”

The NIOs can be found here.