§ 11-45-50 — Solicitation of investment plans; contents; contracts with designated investor groups.

(A)(1) The authority shall solicit as necessary from time to time investment plans for the raising and investing of capital in accordance with the requirements of this chapter. (2) Investment plans submitted shall address such matters as may be required by the authority including, but not limited to the submitting person's: (a) level of experience; (b) quality of management; (c) investment philosophy and process; (d) probability of success in fund raising; and (e) plan for achieving the purposes of this chapter. (3) The authority shall consider the investment plans submitted pursuant to this section and shall select one or more designated investor groups deemed best qualified to: (a) capitalize one or more private revolving funds in accordance with this chapter; (b) invest the capital as permitted by this chapter in a manner mobilizing equity, near-equity or seed capital investments in ventures promoting the economic development goals of this State; and (c) help build a significant, fiscally strong, and permanent resource to serve the objectives expressed in this chapter. (B)(1) Each designated investor group selected pursuant to subsection (A)(3) of this section shall enter into a designated investor contract with the authority, which designated investor contract must contain any investment guidelines and other terms and conditions the authority considers necessary, advisable, or appropriate. (2) A designated investor contract may authorize a designated investor group to invest capital either through investors or directly in South Carolina based companies, or both; provided, however, that any designated investor group authorized to invest directly in South Carolina based companies shall meet the requirements set forth in this chapter for an investor. (3) The authority may charge a fee under each designated investor contract as compensation. (C) Each designated investor group must have a manager who is a person with demonstrated substantial successful experience in the design, implementation, and management of venture capital investment programs and in capital formation. (D) The authority shall have the right as further specified in the designated investor contract to: (1) remove and replace any designated investor group; and (2) effect the assignment of all assets, liabilities, and tax credits acquired or incurred in connection with this chapter to any other designated investor group.

Legislative History

HISTORY: 2004 Act No. 187, SECTION 5; 2005 Act No. 125, SECTION 1; 2007 Act No. 83, SECTION 8.B; 2007 Act No. 110, SECTION 4.B; 2007 Act No. 116, SECTION 2.B.