Financial and insurance services

Tender description

British Business Bank is conducting this procurement to establish frameworks of fund managers for:- Lot 1 — equity funds within the framework range value of 80 000 000 GBP to 300 000 000 GBP across a number of funds; Lot 2 — debt funds within the framework range value of 120 000 000 GBP to 400 000 000 GBP across a number of funds Lot 3 — small business loans funds within the framework range value of 30 000 000 GBP to 60 000 000 GBP across a number of funds Lot 4 — proof of concept and early stage funds within the framework range value of 20 000 000 GBP to 40 000 000 GBP across a number of funds It is anticipated that the first fund which will call off under the Framework Agreement by way of Mini-Competitions will be The Midlands Engine Fund (MEIF) where there is an expected 250 000 000 GBP to be invested in SME's in the Midlands 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 MEIF Area. Equity Funds where the authority is looking to commit between 80 000 000 GBP and 300 000 000 GBP across a number of funds. Each equity investment must satisfy the following conditions: 1) Be an investment in an SME in the MEIF Area 2) Be an investment in a range size of up to 2 000 000 GBP subject to permitted changes in accordance with the IOGs of the relevant Fund 3) All conditions in the the Investment Operational Guidelines (IOGs), the Limited Partnership Agreement (LPA) and Fund Management Agreement of the relevant Fund General Requirements applicable to all Lots (including without limit the following): 1.Operating one 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 MEIF Area before and after concluding investments; 4.Concluding equity, debt and small business loans investments (as appropriate to the Fund's investment type), in eligible SMEs in the MEIF 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 120 000 000 GBP and 400 000 000 GBP. Each loan must satisfy the following conditions: 1) Be a loan to an SME in the MEIF Area 2) Be a loan in a range size of 100 000 GBP to 1 500 000 GBP subject to permitted changes in accordance with the IOGs of the relevant Fund 3) All conditions in the IOGs, LPA and IMA of the relevant Fund General Requirements applicable to all Lots (including without limit the following): 1.Operating one 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 MEIF Area before and after concluding investments; 4.Concluding equity, debt and small business loans investments (as appropriate to the Fund's investment type), in eligible SMEs in the MEIF 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. Small Business Loans where the authority is looking to commit between 30 000 000 GBP and 60 000 000 GBP. Each small business loan must satisfy the following conditions: 1) Be a loan to an SME in the MEIF Area 2) Be a loan in a range size of 25 000 GBP to 100 000 GBP subject to permitted changes in accordance with the IOGs of the relevant Fund 3) All conditions in the IOGs, LPA and IMA of the relevant Fund General Requirements applicable to all Lots (including without limit the following): 1.Operating one 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 MEIF Area before and after concluding investments; 4.Concluding equity, debt and small business loans investments (as appropriate to the Fund's investment type), in eligible SMEs in the MEIF 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. Proof of Concept and Early Stage Fund where the authority is looking to commit between 20 000 000 GBP and 40 000 000 GBP Each equity, quasi-equity or loan investment must satisfy the following conditions: 1) Be an investment in an SME in the MEIF Area 2) Be an investment in a range size of up to 750 000 GBP subject to permitted changes in accordance with the IOGs of the relevant Fund 3) All conditions in the IOGs, LPA and IMA of the relevant Fund General Requirements applicable to all Lots (including without limit the following): 1.Operating one 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 MEIF Area before and after concluding investments; 4.Concluding equity, debt and small business loans investments (as appropriate to the Fund's investment type), in eligible SMEs in the MEIF 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.