A disagreement involving risk associated with investments in two space companies has apparently caused the state of New Mexico and an investment firm to part ways, the Albuquerque Journal reported Sunday. (The site requires a subscription, although a Salon-like ad-supported day pass is available; otherwise, the text of the article is available here.) According to the report, Fort Washington Investment Advisors had a contract to manage state investment into companies and venture funds. When the state proposed to invest $20 million into t/Space and another $20 million in Virgin Galactic, the company balked, wanting to limit its liability for any recommendations associated with the investments because it believed they were “more like economic development projects than private equity transactions.” The state objected: “We want that advice to have some weight behind it. Some teeth,” a spokesman for the State Investment Council said. The state now wants to remove the company from its fund-managing role, and, as you might imagine, all this is heading to court. What affect this might have on the t/Space investment (which was approved, but is contingent on the company winning a COTS award) or Virgin Galactic (an investment yet to be taken up by the council) is unclear.
