About Grow Michigan

Grow Michigan

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 private sector risk capital investments which would be used by Grow Michigan, LLC to support growth, acquisition and succession of small businesses in Michigan.

Grow Michigan’s mission is to provide attractively priced, highly efficient and complimentary growth capital, including value-added assistance, in the form of subordinated debt to Michigan’s “small 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

Investment Philosophy

Provide appropriate growth capital to Michigan’s underserved lower middle market into companies with:

  • Strong character and integrity of ownership and 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
  • Major Capital Expenditures
  • Recapitalizations
  • Management Buyouts

Target Market

Grow Michigan’s target market includes 5,400 lower 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