By Nevada News Bureau Staff: Treasurer Kate Marshall announced today that a request for proposals for a manger to oversee a new investment program using up to $50 million from the state Permanent School Fund has been issued by the Nevada Capital Investment Corporation (NCIC) Board of Directors.
Submissions for the Request for Proposal must be received by the state Treasurer’s Office by March 9. A committee will then review the submissions and provide the NCIC board its recommendations as to the top candidates. The NCIC will select the top vendor.
The fund manager will be responsible for the development of an investment plan for approval by the board, selection of private equity funds that will invest in Nevada businesses, for providing mentoring and networking opportunities for Nevada entrepreneurs, and for developing a collaborative partnership between Nevada System of Higher Education institutions, investors, and private industry.
“Based on the tremendous interest we have received from the private sector, we expect to receive dozens of submissions to our RFP, which will provide the board with the opportunity and the ability to select a professional firm that will seek investments in businesses located in Nevada, looking to expand in Nevada, or in businesses wishing to relocate in Nevada,” Marshall said. “In accordance with SB 75, the fund manager’s primary and fiduciary investment responsibility is to generate a positive return; however, because of its statutory-mandated focus on Nevada, an ancillary benefit will be increased economic development and employment in Nevada.”
Sponsored by Marshall during the 2011 legislative session, Senate Bill 75 created the state’s first in-state private equity investment fund. The goal of this fund is to capitalize on investment opportunities in Nevada in order to increase funding for Nevada’s K-12 schools.
SB 75 created the NCIC, a nonprofit corporation overseen by a seven member board, including appointees by the governor and the Legislature. Under SB 75, up to $50 million from the state’s Permanent School Fund may be invested in private equity. The Permanent School Fund is comprised of non-tax dollars. Earnings from the fund go to Nevada’s K-12 schools.