Group says Mark Kvamme Could Get $9M From OSU Deal

Mark Kvamme could get as much as $9 million from OSU deal.(Photo: Ohio Department of Development)
Mark Kvamme could get as much as $9 million from OSU deal.(Photo: Ohio Department of Development)

A group critical of JobsOhio says the California native brought in to be its first president may have used that position to set himself up for a big payday later.

The liberal group Progress Ohio has been trying to find out about the deals Mark Kvamme has been striking with his firm Drive Capital since leaving JobsOhio.

Progress Ohio’s Brian Rothenberg says based on a similar proposed deal with one of the state’s pension funds, Kvamme could net $9 million in fees, half a million in expenses and 20% of future profits from Ohio State’s investment in his company.

“I think he definitely cashed in on the relationships that he was able to develop in Ohio – better than most Ohioans could,” said Rothenberg.

Rothenberg said he’s had a difficult time getting documents to prove this, but he thinks the deal Ohio State received is the same one as proposed to the pension fund – though the records he received from OSU are so heavily redacted it’s hard to tell.

Progress Ohio is part of a suit challenging the constitutionality of JobsOhio.

There was no response to an email soliciting a comment from Ohio State.

Comments
  • FINANCE101

    Or zero depending on his funds performance. If his fund terms are typical which Rothenberg assumes and he owns a 50% interest in the fund (he has at least one partner) then he must triple the value of the $50 million of investable capital to earn $9 million which would be spread out over about 10 years for the average vc. fund. If Ohio State receive a profit of $100 million on the $50 million investment, then Kvamme would earn around $9 million or about $900,000 per annum. According to Cambridge Associates that consults for Pensions and Endowment, over half the funds do not return more than 150% of there capital. Unless a fund earns returns more than 170% of capital deployed, the managers will not receive any profits interest. So I guess Progress Ohio’s assumption is that Kvamme could be a great asset manager. I hope so for Ohio State’s sake