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New York State pension fund boosts small businesses with $50M investment

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  • Staff Report 

State Comptroller Thomas P. DiNapoli announced today that the New York State Common Retirement Fund has allocated $50 million to the New York Small Business Investment Company (SBIC) Fund II L.P. This commitment serves as the cornerstone for the fund managed by Hamilton Lane, which supports small business growth throughout New York. DiNapoli, the trustee of the Fund, highlighted this move as a dual-purpose strategy to yield returns for the state pension fund and energize the local economy by assisting small businesses.

The SBIC Fund II, introduced in 2022, continues the strategy of its predecessor, the New York SBIC Fund I, which also received a $50 million investment from the pension fund in 2015. With $150 million in total capital, including contributions from six regional and national banks, the fund is poised to make initial investments in diverse industries such as manufacturing, business services, healthcare, technology, and industrials. These investments will target companies based in New York or those with significant operations within the state, providing them with critical credit, mezzanine, and equity financing.

DiNapoli’s investment in the SBIC Fund II is part of the larger In-State Private Equity Investment Program, which has placed over $1.7 billion in more than 500 companies over two decades, making it one of the nation’s most substantial state-focused pension investment programs. As of March 2023, the In-State program has seen returns exceeding $1.8 billion from $1 billion invested in 292 completed transactions, underlining the program’s success and its beneficial impact on the state’s economic landscape.

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