Financial and insurance services

Tender description

This Prior Information Notice (PIN) is intended to inform the market of a prospective opportunity relating to the establishment of a funding vehicle designed to increase the provision of early years places in England, focusing on those private and voluntary providers who will deliver the 30 hours extended entitlement (coming into effect September 2017). By increasing the availability of 30 hour places, the Fund aims to create a work incentive for families with young children. Alongside the work incentive, the funding vehicle will focus on providers who are able to demonstrate social impact, directly through the provision of their childcare services and/or through provision of additional services in the wider community. It is anticipated that the loan investments made to providers will be used for working capital (including operating costs); traditional capital builds (including new builds, expansions and refurbishments) and maintenance and infrastructure improvement projects. DfE intends to appoint a supplier which will (a) establish the funding vehicle; and (b) establish a General Partner to act in such a capacity for the fund — managing, raising investment for and administering the fund (directly or via its appointed Fund Manager). The General Partner (or its appointed Fund Manager) will also be responsible for establishing a grant facility (c. 2 000 000 GBP provided by DfE) to support providers accessing the fund. DfE's initial investment to the Fund is anticipated to be in the region of 10 000 000 GBP and the Fund Manager will seek to attract further investment (approx. 20 000 000 GBP) from commercial and social investors creating a larger pot for distribution (as loans) directly to providers. At this stage, the DfE is not limiting the format for the grant requirement but the preferred option is that the Fund Manager will be responsible for procuring a panel of approved advisors to deliver support to successful applicants.