Complete 2012 forensic audit documents - Kansas Bioscience ...

After the RFQ evaluation, Ennis Knupp moved forward with its more in-depth due diligence on
all 12 applicants. During its due diligence process, Ennis Knupp focused on a wide number of
key variables, concentrating particularly on the experience, strategy, track record and strength of
the funds’ management teams. Ennis Knupp also conducted reference calls of each venture
firm’s historical limited partners, co-investors, portfolio company executives, financial sponsors
and investment bankers. Based on Ennis Knupp’s rankings, the Investment Committee
shortened the list to eight candidates. The eight selected candidate firms then made presentations
to the Investment Committee for further assessment.
Selected Venture Capital Funds
On October 8, 2009, the BOD approved $50 million in investments in the following venture
funds:
• $10 million in MPM Heartland BioVentures, L.P., when minimum funding of $40
million is closed
• $10 million in Burrill Life Science Capital Fund IV, L.P., when minimum funding of $40
million is closed
• $5 million in Prolog Capital III, L.P., when minimum funding of $25 million is closed
• $5 million in MidPoint Food and Ag Fund, L.P., minimum funding of $25 million
already raised
• $5 million in Open Prairie Ventures II, L.P., minimum funding of $25 million already
raised
• $5 million in Triathlon Medical Ventures Fund II, L.P., when minimum funding of $25
million is closed
• $5 million in Midwest Venture Fund I, L.P., when minimum funding of $25 million is
closed
• $5 million in Meadowlark Venture Partners, L.P., when minimum funding of $25 million
is closed
KBA will invest in each venture capital fund as a limited partner. A limited partner’s liability is
limited to the extent of the partner’s share of ownership. Limited partners generally do not have
any kind of management responsibility or authority in the partnership, and are not responsible for
its debt obligations.
KBA Requirements and Side Letter Terms
Approved investments in each venture capital fund are contingent upon each of the following
terms:
• each venture capital fund must raise a minimum of $25 million of investment capital
before KBA will be required to invest, and in the case of MPM Capital and Burrill, a
minimum of $40 million;
• KBA’s funding commitment to each venture capital fund will not exceed 20% of the
fund’s aggregate capital raised or available for capital investment; and
• KBA and each venture capital fund must execute a mutually acceptable limited
partnership agreement and any other associated legal documents required to appropriately
document the rights and responsibilities of each party.
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