Background

In 2021, the Iowa General Assembly passed legislation that allows University of Iowa--along with the other Regents universities--to make investments in private enterprises:

            Funds belonging to an institution governed by the board may be invested in private enterprises if such investment is made in furtherance of the institution’s mission. The board shall annually, on or before November 1, submit a report to the general assembly providing information regarding how the board invested any funds in accordance with this paragraph, including the amount invested, how long the board has invested such funds, and the percentage of equity in each private enterprise held by the board. Iowa Code 262.14(3)(f)

In response to this legislation, President Wilson convened a working group for guidance on how the University might further its mission through investments in private enterprises along with guidance on how to conduct such investments.  The working group also sought advice from the University’s senior leadership. The group identified two opportunities for investment:

Investment Opportunities

1. Investments for the financial benefit of the University: investments in private enterprises to fulfill the University’s unmet needs or to meet such needs in a more cost-effective manner or in a manner that better aligns with the University’s mission.

  • The Chief Financial Officer and Treasurer will take the lead in identifying, negotiating, and managing these investments, in consultation with the Office of General Counsel
  • Note that these types of investments are not traditional investments solely for an ROI.  Such investments are currently managed by the Center for Advancement and will continue to be managed by UICA.

2. Investments for the educational benefit of students: investments in private enterprises founded by (i) University students/recent alumni or (ii) current or former program participants of JPEC’s Venture Monitoring Services or Venture School. 

  • Funds will be sourced from non-GEF sources such as donations 
  • JPEC will take the lead in identifying and negotiating financial terms for these investments
  • UIRF will negotiate, execute, and manage legal investment documents in consultation with OGC and outside counsel, as needed, and with expenses reimbursed by JPEC 
  • Prior to commencing investment activities, JPEC will confirm with the Office of the Vice President for Research and OGC that the investment opportunities comply with the requirements of the legislation and other University policies and guidelines (see the attached Exhibit for some of these requirements and guidelines).
  • Note that these types of educational investments are separate from investments managed by the UI Research Foundation in connection with UIRF’s licenses with private enterprises.

The CFO will assume responsibility for making annual reports to the board on behalf of both types of investment opportunities.