Financial and insurance services

Tender description

BBB is conducting this procurement to establish frameworks of fund managers for: Lot 1 — equity funds where the authority is looking to commit between 100 000 000 GBP and 400 000 000 GBP across a number of funds; Lot 2 — debt funds where the authority is looking to commit between 100 000 000 GBP and 400 000 000 GBP across a number of funds; and Lot 3 — micro-finance funds where the authority is looking to commit between 20 000 000 GBP and 80 000 000 GBP across a number of funds. It is anticipated that the 1st fund which will call-off under the Framework Agreement by way of Mini-Competitions will be Northern Powerhouse Investment Fund (‘NPIF’), which is a fund of over 400 000 000 GBP to invest in smaller businesses and is subject to European funding. However the scope of the Framework extends to other funds which may be identified during the period of the Framework in the NPIF Area (including funds currently or previously operating as well as any new funds that become available). Equity funds where the authority is looking to commit between 100 000 000 GBP and 400 000 000 GBP across a number of funds. Each equity investment must be an investment in an SME in the NPIF Area and be an investment in a range size of 50 000 GBP to 2 000 000 GBP (unless otherwise agreed). General requirements applicable to all Lots including without limit: 1. Operating 1 or more funds in accordance with the terms of the relevant fund management agreement; 2. Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals; 3. Generating deal flow and working with investee companies in the NPIF Area before and after concluding investments; 4. Concluding equity, debt and micro-finance investments (as appropriate to the Fund's investment type), in eligible SMEs in the NPIF Area and in accordance with EC State aid law and all other laws; 5. Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies; 6. Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund; 7. Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets; 8. Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and 9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds. The figure in II.2.6) is the lowest estimated fee based on the bottom end of the fund size in II.1.4) for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4) for this Lot. Debt funds where the authority is looking to commit between 100 000 000 GBP and 400 000 000 GBP across a number of funds. Each loan must be a loan to an SME in the NPIF Area and be a loan in a range size of 100 000 GBP to 750 000 GBP (unless otherwise agreed). General requirements applicable to all Lots including without limit: 1. Operating 1 or more funds in accordance with the terms of the relevant fund management agreement; 2. Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals; 3. Generating deal flow and working with investee companies in the NPIF Area before and after concluding investments; 4. Concluding equity, debt and micro-finance investments (as appropriate to the Fund's investment type), in eligible SMEs in the NPIF Area and in accordance with EC State aid law and all other laws; 5. Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies; 6. Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund; 7. Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets; 8. Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and 9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds. The figure in II.2.6) is the lowest estimated fee based on the bottom end of the fund size in II.1.4) for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4) for this Lot. Micro-finance funds where the authority is looking to commit between 20 000 000 GBP and 80 000 000 GBP across a number of funds. Each micro-finance loan must be a loan to an SME in the NPIF Area and be a loan in a range size of 25 000 GBP to 100 000 GBP (unless otherwise agreed). General requirements applicable to all Lots including without limit: 1. Operating 1 or more funds in accordance with the terms of the relevant fund management agreement; 2. Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals; 3. Generating deal flow and working with investee companies in the NPIF Area before and after concluding investments; 4. Concluding equity, debt and micro-finance investments (as appropriate to the Fund's investment type), in eligible SMEs in the NPIF Area and in accordance with EC State aid law and all other laws; 5. Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies; 6. Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund; 7. Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets; 8. Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and 9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds. The figure in II.2.6) is the lowest estimated fee based on the bottom end of the fund size in II.1.4) for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4) for this Lot.