West Virginia Envisions Strategic Investment Vehicle Called Mountaineer Impact Fund
Posted on 03/13/2020
West Virginia’s Senate Finance Committee approved the creation of an investment fund that would bring foreign and domestic money into the state. It would be called the Mountaineer Impact Fund. Its champion, House Speaker Roger Hanshaw, encouraged the passing of House Bill 4001. The bill is now going before the full Senate. Hanshaw said the fund was needed to “de-risk the flow of foreign capital into the state of West Virginia.” China Energy had planned a US$ 83 billion energy deal in the state. However, the funds were never sent despite a memorandum of understanding and many are wondering if the deal will still happen.
West Virginia is willing to co-invest, but plans are for private equity, corporations, and sovereign wealth funds to bring the majority of the capital. Hanshaw said he modeled his plan off of the sixteen U.S. states that began similar funds. Hanshaw said: “In each and every instance, the state-sovereign entity-has reached into the pocket of its taxpayers and capitalized a fund to be used for the purposes of economic development, and those funds are being used against us. . . We are in a position to capitalize a US $1 billion fund from private sources around the world looking for a way to flow their capital into the United States.”
If the fund is created, a Board led by an Executive Director would need to be established. A separate investment committee made up of the Governor and five appointees would oversee potential investments. Hanshaw said that in the event an investment turns bad, the taxpayers will not be left to foot the bill.