TAFT ANNOUNCES NEW OHIO VENTURE CAPITAL AUTHORITY PROGRAM ADMINISTRATOR
Buckeye Venture Partners chosen to manage $100 million fund of funds

FOR IMMEDIATE RELEASE
February 2, 2005

Columbus, OH -- Governor Bob Taft today announced that the Ohio Venture Capital Authority (OVCA) has chosen Buckeye Venture Partners, LLC (BVP) to serve as program administrator of the Ohio Venture Capital Fund Program. This state initiative is designed to increase private investment in Ohio companies at the seed or early stage of business development.

“Securing and investing venture capital is critical to Ohio’s ability to grow companies and create high-paying jobs,” said Taft. “Buckeye Venture Partners will help the OVCA enhance our venture capital environment and create jobs by encouraging Ohio’s entrepreneurial spirit.”

Under an expected 15-year contract, BVP, a company newly formed by Cincinnati-based Fort Washington Capital Partners Group and Cleveland-based Peppertree Partners, will create and manage a $100 million fund of funds, named The Ohio Capital Fund. BVP will capitalize the Fund with loans from banks, insurance companies, corporations and individuals. BVP will then determine qualified venture capital funds and make appropriate investments. The OVCA is authorized to issue tax credits to support the repayment of principal and interest on the BVP’s capital-raising loans, if and when necessary. Loans to The Ohio Capital Fund are backed by tax credits, as provided by SB 180, approved by the 125th General Assembly.

“We are excited to have been chosen for the program administrator role by the Ohio Venture Capital Authority,” said Gus Long, managing director for BVP. “Fort Washington and Peppertree are Ohio-based companies with extensive experience in managing regional and state-focused programs and providing a sound understanding of Ohio’s unique economic climate. Working together as Buckeye Venture Partners, we’re confident our experience combined with our strong relationships with leading private equity firms will enable us to make significant contributions to Ohio’s future.”

BVP will be headquartered in Cincinnati, with locations in Cleveland and Columbus. OVCA Chairman Robert W. Briggs said this was a key factor in selecting Buckeye Venture Partners for the program administrator role. “BVP’s broad presence throughout Ohio ensures geographic coverage of the entire state and enables them to keep several fingers on the pulse of Ohio’s business and investment communities.”

BVP anticipates making initial commitments to venture capital funds this summer. The investment policy of the OVCA requires that 75 percent of The Ohio Capital Fund’s monies be invested in venture capital funds headquartered in Ohio. Each fund may receive up to $10 million from The Ohio Capital Fund and must match funds at a ratio of one-to-one if located within Ohio, or four-to-one (private investment versus Program monies) if located outside of Ohio. A minimum of 50 percent of all Program monies must be invested in Ohio-based early and seed stage business enterprises, regardless of the venture capital fund’s location.

“The availability of early-stage capital is vital to the development of an economy powered by technology-based businesses,” said Lieutenant Governor and State Development Director Bruce Johnson, who also serves on the OVCA Board. “The OVCA will provide a steady source of capital for Ohio venture capital funds. Having more venture firms in Ohio helps fill the gap between innovation and commercialization, which is critical to the success of emerging companies and their ability to create jobs.”

The OVCA is governed by a board of seven members of the general public appointed by Governor Taft, as well as the state development director and the tax commissioner for the State of Ohio, both as non-voting members. All appointed members have experience in investment banking, early stage venture capital, fund-of-funds management, entrepreneurship and/or other areas relevant to the activities of the Program.

Buckeye Venture Partners will submit quarterly reports, conduct an annual audit, administer repayments of loans and excess revenues in accordance with the investment policy, and certify the necessity of contingent tax credit authorizations to the OVCA.