DiNapoli touts fund for N.Y. business

A state pension fund used to help private equity managers invest in New York companies continues to grow, and state Comptroller Thomas P. DiNapoli told the Times editorial board Wednesday morning he's pushing businesses to jump on board.

Mr. DiNapoli praised the program as one of the state's successes this year, despite the global economic downturn and budget woes Albany continues to face.

"We have an obligation to get this money to the counties north of New York, and 55 percent of the money deployed so far has been upstate," Mr. DiNapoli said.

The state Common Retirement Fund's In-State Private Equity Program has invested $403.6 million in 127 companies since its inception in 2000.

The program is designed to provide investment returns consistent with the risk of private equity while expanding the availability of capital for state businesses. The program has seen a rate of return of about 30 percent as of March 1, according to the comptroller's office.

In December, the program invested $1.5 million in the clean-energy company ZeroPoint Clean Tech, based in Potsdam, to help the company expand commercial production of a synthesis gas used as an alternative to natural gas and to develop new products.

In May 2008, the state invested $6.9 million from the fund to help DeltaPoint Capital, Rochester, acquire Climax Manufacturing Co., Lowville.

"We've committed almost $1 billion to this program so far," Mr. DiNapoli said. "That money is in the hands of 17 managers that disperse it statewide. When we see, for example, that funding to the Central New York area is lighter than other areas, we try to even that out. We want to make sure that a majority is dispersed to counties north of New York (City)."

He said he was dismayed that students are earning college degrees in New York, then leaving the state to start businesses.

"Unfortunately, our greatest export has been our young people," he said.

During the almost 60-minute meeting, Mr. DiNapoli said he will continue to support shared service agreements between villages, towns, cities and school districts. Those agreements, however, must be locally borne, and not mandated by the state, he said.

"There needs to be more municipal and jurisdictional agreements that will reduce costs and produce efficiencies," he said. "Those arrangements can be made without hurting services."

Mr. DiNapoli said his office is on pace to perform audits in all of the state's 834 school districts, Boards of Cooperative Educational Services and charter schools by March.

He denied rumors he plans to run for governor in 2010.

"I love being comptroller," he said. "Coming from a middle-class background, it's a privilege for me to hold this office, especially at a time like this."