(The Center Square) – According to a recent report, a fund designed to invest public pension funds into Florida-based technology and high-growth businesses has distributed $1.1 billion to the Florida Retirement System Pension Fund since 2008.
The pension fund received $133.5 million from the Florida Growth Fund Program, according to the report by the Florida Legislature’s research arm, the Office of Program Policy Analysis and Government Accountability. The agency says that the fund has met its benchmarks for returns every year since it was created.
Investment managers told state officials the fund generated 2,300 jobs and invested $391 million in capital expenditures during the review period.
The fund, according to the report, invested in 91 companies through direct investments and invested in 62 private equity funds since 2008. In fiscal 2023-24, the plan invested $59.1 million in 12 companies and 15 private equity funds.
Under state law, the State Board of Administration that invests funds for state agencies, state universities and colleges and local governments directs 1.5% from the state’s defined benefit pension system for state and local employees to the Florida Growth Fund.
The program is divided into three funds and seven outlays of capital totaling more than $1.2 billion.
According to the report, Hamilton Lane manages Florida Growth Funds I and II, and J.P. Morgan Asset Management manages the Florida Sunshine State Fund.
The state board reappointed J.P. Morgan to manage a new outlay of $250 million on April 14, 2022, which was the most recent funding commitment.
Two categories – lumber and other woodworking wholesalers and professional employer organizations – tied as the top industries receiving Florida Growth Fund investments at $7.5 million or 18.6% of the total apiece.
Roofing contractors received $6 million (nearly 15%), prefabricated metal building manufacturers had $5.5 million (13.5%) and computer design services received $5 million (12.4%).
Also receiving investments were marinas ($2.6 million, 6.5% of the total outlay), engineering services ($2.3 million, 5.7%), residential property managers ($1.4 million, 3.6%) and landscaping ($1 million, 2.5%).
Fund recipients are located in 17 counties, with most of them centered in seven counties – Broward, Duval, Hillsborough, Miami-Dade, Orange, Palm Beach and Pinellas – that account for 81.8% of the plan’s investments.
