On January 25, 2012, the Michigan Strategic Fund approved an award to Grow Michigan, LLC to operate the Operating Company Initiative (“OCI”) under the Capital Conduit Program.  The OCI is designed to stimulate and support growth, expansion and succession of small businesses in Michigan. To that end, Grow Michigan is pleased to report that with it’ first Fund it has made 35 investments aggregating $61.7 million which leveraged $320 million in senior debt, 10.6 % Investment Revenue as a % of average invested capital at fair market value while also providing Community Reinvestment Act Credits to participating Senior Lenders.

In seeking to build upon the success of Grow Michigan’s existing platform and success, Grow Michigan II was established in partnership with First Independence Bank (“FIB ”) with the following Mission:

Provide attractively priced, highly efficient and complimentary growth capital, including value-add assistance, in the form of subordinated debt to Michigan’s small and middle-market business community in a broad range of industries while accomplishing:

• Superior financial investor returns with managed incremental credit risk, and
• Community reinvestment objectives of its investors
• Inclusive, active, intentional engagement and participation with Michigan’s underserved lower middle market companies

In collaboration with FIB, one of the largest and most successful minority owned banks, Grow Michigan II helps bridge the gap between business owners and capital; hence, expanding wealth creation opportunities for companies throughout Michigan.

Provide appropriate growth capital and advisory services to Michigan’s underserved lower middle market companies with:

• Strong character and integrity of ownership
• Management capable of delivering continued profit growth
• Top tier capability of the business and its product/service offerings
• Sustainability of the business, its products and/or service offerings
• Desire and ability to execute business initiatives, relentlessly
• Optimal capital structure allowing timely and efficient execution of business initiatives

Clearly defined use of proceeds likely to execute one of the following:

• Business Expansion
• Growth Strategy
• Acquisition Financing
• Job Creation

Grow Michigan’s target market includes smalland middle-middle market enterprises with a presence in Michigan and:

• $3 – $50 million in revenues
• Positive EBITDA
• Typically, but not limited to, manufacturing, distribution, transportation, life sciences and enabling technology