(May 14, 2012) — New York’s pension fund is chasing the technology sector, an inherently riskier investment but capable of above-market returns, New York State Comptroller Thomas P. DiNapoli said.
According to the Office of the New York State Comptroller, the state’s technology companies that have received investment through a program by the New York State Common Retirement fund have raised nearly $4 billion in additional capital.
“Even in these challenging economic times, the entrepreneurial spirit is thriving in New York,” DiNapoli said. “The in-State Private Equity Program helps established and start-up companies based in New York obtain the capital they need to grow their businesses and create jobs,” he continued, referring to the New York State Common Retirement fund’s technology funding initiative. “The state pension fund is contributing to the economic strength of New York, while earning significant investment returns.”
While DiNapoli admitted early stage startups are riskier, he also said they can be positive investments. “We’ve seen a rate of return of about 30%, so we do very well,” DiNapoli told WNYC, referring to the pension fund’s program. “There’s always a risk involved, and not every investment turns out as well as you’d like, but we’ve had a very positive experience.”
DiNapoli has been an avid supporter of two New York City tech businesses — Truveris, which makes software that helps customers with their pharmacy costs, and Movable Ink, which offers email services to other businesses — that both received funding through the New York State Common Retirement Fund’s in-State Private Equity Program. The Fund has invested nearly $250 million in New York City companies through the program.
“Truveris and Movable Ink are technical innovators building the companies of the future and are part of what is making New York City one of the world’s leading technology hubs,” DiNapoli said.
Since the program began in 2001, the state has invested $608 million in 218 companies, including 139 in New York City.
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