Oklahoma Capital Investment Board
October 27, 2005
(OKLAHOMA CITY, OK) - Major league professional sports debuts in Oklahoma this week, due in part, to a little known state entity called the Oklahoma Capital Investment Board (OCIB). OCIB joined the City of Oklahoma City and private investors to support the city’s bid to give the New Orleans Hornets a temporary home at the Ford Center for its 2005-2006 NBA basketball season.
Created by state legislators in 1991, OCIB is a trust of the state with a mission to mobilize sources of equity and near-equity capital to serve Oklahoma businesses. The Board uses its legislative authority to expand the state’s private risk capital industry.
As an inducement for relocating the New Orleans team, Oklahoma City officials assembled a group to help ensure a minimum level of revenues to the team. The city, private investors and OCIB each agreed to share one third of the $10 million commitment that may be called if revenues for the season fall short of a $40 million goal.
OCIB approved handling the state’s commitment at the request of State Treasurer Scott Meacham.
“We called a special meeting of our board on September 16,” said Devon Sauzek, OCIB President. “Board members looked at the benefits to the state and the structure of the project, and determined it was worthy of support.”
“This is a unique opportunity for Oklahoma,” said Governor Brad Henry. “I am very pleased OCIB was able to help with the state’s guaranteed portion of this project.”
Since inception, the OCIB has supported investment in sixteen venture capital funds, which in turn have attracted investment of nearly $100 million to Oklahoma projects. In addition, the board has supported more than $38 million in development loans to 1300 small Oklahoma companies.
“We’re certainly known in the investment community, but this is the first time we’ve been associated with a project of such general public interest,” said Sauzek.
“We are pleased to be a part of bringing jobs and an economic boost to central Oklahoma while New Orleans recovers from the devastation of Hurricane Katrina.”
The Oklahoma Capital Investment Board is a non-appropriated public trust with the State of Oklahoma as its sole beneficiary. The Board mobilizes equity and near-equity capital for investments in a manner that will result in a significant potential to create jobs and diversify Oklahoma’s economy.
Kym Koch Thompson