Public deserves more info on Indiana Future Fund

January 12, 2009
[In response to a Jan. 5 story] The Indiana Future Fund, by restricting (or even pressuring) investment to Indiana is practicing economic provincialism—a sure way to lower returns.

Is there $73 million worth of life sciences investment in Indiana? Who knows? If so, what has prevented the private sector from exploiting these opportunities? If less, we have a recipe for poor investment decisions. These issues and broader ones are germane to all of us; these are, after all, mostly public monies.

Public accountability measures for the fund should be made available. What are the management fees being paid to Credit Suisse and the venture capital companies? Have the venture participants matched the public funds with their own capital? Which technology companies have received funding? The level of information on is insufficient.

In general, we should be circumspect of public economic development efforts—investments made by those not bearing financial responsibility for the outcome—on both the state and national level. In the case of the Indiana Future Fund, mixing the necessities of public pension investment with Indiana bioscience promotion is unwise.

-Sol Grundy
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