Financial and insurance services

Tender description

Funding London is the trading name of SME Wholesale Finance (London) Limited “the Authority” and is a wholly owned subsidiary of the Greater London Authority (GLA). The Authority is seeking to enter into Limited Partnership Agreements (LPA’s) with FCA authorised fund management organisations to manage and invest the capital of a new 100 000 000 GBP Fund of Funds that will be invested in 4 new subfunds for SME’s who’s core activities are based in London: Fund 1 (Lot 1): a 45 000 000 GBP Early Stage Venture and Circular Economy Fund. (14 000 000 GBP ring fenced for Circular Economy); Fund 2 (Lot 2): a 25 000 000 GBP Small Loan Fund; Fund 3 (Lot 3): a 25 000 000 GBP Larger Loan Fund. Fund 4 (Lot 4): a 5 000 000 GBP Micro Loan Fund. Fund manager organisations can submit tenders to manage one or more of the subfunds. There is no limit to the number of awards that can be made to any one fund manager organisation. The funds are to deliver European Regional Development Fund (ERDF) outputs. The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 45 000 000 GBP Early Stage Venture and Circular Economy Fund. This fund will focus, in accordance with the Authority Brief (Volume 2 of the procurement documents), on the sectors of strategic importance to the London economy. There will be specific support for early stage SMEs in the circular economy. Of the 45 000 000 GBP, at least 14 000 000 GBP will be ring-fenced for investments in circular economy businesses. In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the Equity Fund, the fund manager will be required to secure at least an equal amount from co-investors as it is investing in any one company. Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2). The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 25 000 000 GBP Loan Fund (small loans 100 000 GBP to 500 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), provide loans to enterprises in London seeking debt facilities to expand their business. In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the smaller and larger loan funds, the fund manager will be required to syndicate at least 25% of the loans made by value. Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2). The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 25 000 000 GBP Loan Fund (larger loans 500 000 GBP to 1 000 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), provide loans to enterprises in London seeking debt facilities to expand their business with larger funding requirements. In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the smaller and larger loan funds, the fund manager will be required to syndicate at least 25% of the loans made by value. Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2). The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 5 000 000 GBP Micro Loan Fund (Micro Loans 10 000 GBP to 100 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), focus on micro enterprises, providing loans for new, young or established enterprises. In accordance with the Authorities Brief, there is no set minimum target for private sector co-investors; however, to the extent possible and appropriate, the selected fund manager will be asked to syndicate a proportion of the loans where there is an opportunity to do so. Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2).