TNInvestco expansion likely

On Friday, Sen. Doug Overbey (left, R-Maryville) told VNC he remains optimistic that the TNInvestco capital-formation program will be expanded by the $40MM requested by the Administration to fund two more of the new TNInvestco funds. Both Tennessee Angel Fund (Nashville Capital Network) and Solidus-TNInvestco had "alternate" status in the initial round, and are hoping to get $20MM tax-credit allocations each, if the program is expanded. There's apparently less reason for optimism on the parts of two other outliers: NEST-TN and Memphis Biomed Venture Tennessee. Many policymakers (among those watching the issue) seem hesitant to go beyond the $40MM sought by the Administration; and, as widely reported, a number of candidates to succeed Gov. Phil Bredesen in January have signalled caution. State Rep. Beth Harwell (R-Nashville) told VNC on Monday that she'll hold her opinion until the expansion measure hits the House Commerce committee, which she chairs. She also said that it's her sense that a "recapture" provision sought by Advantage Capital, which would revoke tax credits sold to insurance companies that invested in TNInvestco funds that failed to meet performance criteria, is essentially dead this Session. The "clawback" proposal had been fought by the Administration and others who felt it would take the wind out of TNInvestco sails. Sen. Overbey told VNC, in fact, he was concerned that the recapture threat would needlessly divert TNInvestco-generated capital into insurance payments, as fund managers sought to mollify hard-bargaining insureco investors.