September 18, 2003

On behalf of the State of Michigan Retirement Systems (SMRS), State Treasurer Jay B. Rising is taking aggressive action to recover assets rightfully owed to the SMRS by a former investment partner. Treasurer Rising and other Limited Partners representing an 87% interest in the MBW Venture Partners Limited Partnership, which dissolved nearly eight years ago, are demanding that assets be distributed to the Limited Partners.

MBW Venture Partners Limited Partnership dissolved on December 31, 1995, but to date, General Partners Ian Bund of Ann Arbor, Philip McCarthy of Summit, New Jersey, and James Weersing of Los Altos, California have continued to hold the Limited Partners’ funds. Treasurer Rising says, since 1998, those investments made by MBW have gone public, though the shares were not distributed to the Limited Partners. Bund, McCarthy, and Weersing have also continued to collect substantial annual management fees. "MBW’s assets, which rightfully belong to the Limited Partners, including the State of Michigan, have been dwindling over the years as a result of these continuing management fees," said Treasurer Rising. "I have demanded that Mr. Bund and his General Partners release these assets and fully wind down operations of the partnership."

In addition, Treasurer Rising and the coalition of Limited Partners have demanded that MBW make any and all other payments required by the Partnership Agreement, cease paying management fees to themselves, and reimburse the Limited Partners for management fees collected since the scheduled dissolution of the partnership. Mr. Bund has been given until October 15, 2003, to respond to the Limited Partners’ demands. If the demands are not met, Rising says, the State of Michigan will enforce its rights to the full extent of the law. "This partnership must be liquidated and all assets paid out. Let there be no question, we will take whatever steps are necessary to see that done."