SOUTH AUSTRALIAN PRIVATE EQUITY PROGRAM

84 Dr McFETRIDGE (Morphett) (31 July 2007). Why has funding to the South Australian Private Equity Program been increased by $7.7 million?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): The Department of Trade and Economic Development (DTED) has advised:

On 11 August 2005, the Premier announced that Paragon Advisory Pty Ltd would receive up to $10 million from the Government under the South Australian Private Equity (SAPE) Program, on the basis that it raises between $3 and $4 in private capital investment for every $1 that the Government invests.

Fund raising for the Paragon Private Equity Fund 1, managed by Paragon Private Equity (formerly Paragon Advisory Pty Ltd) achieved a final close in April 2007. A total of $25.6 million in private capital investment was committed as at final close. The Government's commitment at final close, based on the approved and documented formula of $1 for every $3 of private capital investment up to $15 million of private capital investment and $1 for every $4 of private capital investment over $15 million, is $7.7 million.

The $7.7 million funding commitment is the actual final commitment under the approved amount of up to $10 million. It is not an increased commitment. The balance of the $10 million, namely $2.3 million, will not be required under the SAPE Program.