determined for financial statement purposes as of June 30 next
preceding the date of investment. An investment shall be deemed
a venture capital investment if it results in the acquisition of
equity interests or a combination of debt and equity interests
in a business which is expected to grow substantially in the
future and in which the expected return on investment is to come
predominantly from an increase in value of the equity interests
and are not interests in or secured by real estate. A venture
capital investment may be made only if, in the judgment of the
board, the investment is reasonably likely to enhance the
general welfare of this Commonwealth and its citizens and meets
the standard of prudence set forth in subsection (a). In
determining whether the investment meets the standard of
prudence, the board may consider, together with the expected
return on and the risk characteristics of the particular
investment, the actual and expected future returns and the risk
characteristics of the total venture capital investments held by
the board at the time and the degree to which the proposed new
investment would promote further diversification within the
venture capital asset class.
* * *
Section 2. Section 5931(h) of Title 71 is amended to read:
§ 5931. Management of fund and accounts.
* * *
(h) Venture capital, private placement and alternative
investments.--[The board in its prudent discretion may make any
venture capital investment, private placement investment or
other alternative investment of any kind, structure or manner
which meets the standard of prudence set forth in subsection
(a).] Venture capital investments shall be limited to not more
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