Goal is to retain, create jobs
HARTFORD, Conn., March 4, 1996 — Aetna Life & Casualty Company (NYSE: AET) today announced a new investment program to provide up to $100 million in growth capital to mid-sized Connecticut businesses during the next three years. The effort, called the Aetna Connecticut Private Equity Program, is intended to help create new jobs, and maintain existing ones within the state through economically sound investments.
“By stimulating the growth of established, mid-sized businesses in Connecticut, this program will be helping them grow and create jobs,” said Dan Kearney, executive vice president for Aetna’s investment and financial services group. “A healthy state economy is important to Aetna because Connecticut is our home. Making growth capital available to Connecticut companies is one way to help make that happen.”
“This program is meant to help create jobs while providing us the return on the capital demanded by our shareholders,” Kearney said.
Under the program’s terms, Aetna will seek to invest in conjunction with private equity funds where Aetna is a limited partner or otherwise has a relationship with the fund’s general partner. The capital will either be equity or equity-linked and will be available to finance growth in companies with established products and operations. Start-ups and first-round venture capital will not be considered. The program has a minimum investment size of $3 million, but has set a target to make from 10 to 20 investments of between $5 million and $10 million.
Kearney said Aetna has been working to establish a franchise in the private equity market in the U.S. and in certain foreign markets for about three years. “We are now allocating additional funds to this effort to generate investments that will be beneficial to Connecticut,” Kearney said. “We’re looking to utilize the expertise of the many high-quality private equity groups that our investment operations have established relationships with over the years.”
Aetna is one of the country’s largest insurance and financial services organizations, centered around three core businesses: Aetna Health Plans, Aetna Retirement Services and Aetna International. Aetna Health Plans is the country’s third-largest health care company, reaching more than 20 million Americans. Aetna Retirement Services markets a variety of retirement, investment and life insurance products to individuals, businesses and not-for-profit institutions, serving 1.5 million customers directly and through nearly 20,000 plan sponsors. Aetna International offers a variety of life insurance and financial services products and has more than 8.5 million customers in 10 countries
For more information about Aetna Inc., please visit the company’s website at www.aetna.com.