Okla. Admin. Code § 150:160-1-3

Current through Vol. 42, No. 7, December 16, 2024

Section 150:160-1-3 - Qualifying firms

(a) To qualify to participate in the Program, a Firm must meet all of the following criteria at the time the application is received by the Department:

(1) An internal rate of return, including realized and unrealized gains, for the Firm's portfolio over the last since inception which is the greater of either:

(A) One-third (1/3) of the annual rate of return for venture capital firms as reported by Pitchbook Data, Inc., or

(B) Five percent (5%).

(2) The Firm managing the Fund will have been active for at least one full year prior to application.

(3) The Firm managing the Fund will have at least Five Million Dollars ($5,000,000.00) in assets under management over the most recent year prior to application.

(4) Principals or Limited Partners associated with the Firm cannot have ever been convicted of or received a deferred sentence for the following:

(A) Any felony offense.

(B) Any misdemeanor offense involving a financial related crime.

(5) The Firm will commit to investing at least ten percent (10%) of any investment they receive from a Public Entity in Oklahoma Based businesses.

(6) A Firm participating in the program may charge no more than 2.5% of its capital as a management fee and may collect no more than 30% of carried interest.

(7) Principals affiliated with the Firm will have a minimum of five (5) years of experience in one of the following areas:

(A) Institutional Investment,

(B) Executive level management, or

(C) Investment Banking.

(8) Be in good standing with all applicable regulatory agencies and taxing entities.

(b) In addition to the criteria set forth above, a Firm which is not Oklahoma Based may only participate if the Firm has made Substantial Investments in this State.

(c) Approval of a Firm for participation in the program may only occur if the Firm meets the qualifications in this subsection, and if the Department believes in its discretion that the Funds appear to be appropriately managed and invested.

Okla. Admin. Code § 150:160-1-3

Adopted by Oklahoma Register, Volume 39, Issue 09, January 18, 2022, eff. 12/15/2021

Adopted by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022