Invest NI - Development Stage Equity Fund Manager(s)

Tender description

Invest NI proposes to establish two development stage equity funds. The objective is to provide c£60 million of new development capital. Two funds are proposed with a minimum investment of £7.5m and a maximum investment of £15m from Invest NI in each fund. Fifty per cent of funds in each Development Fund is to be raised from private investors. The balance of funds in each Development Fund is to be raised from private investors. Tenderers will be required to establish and manage one of two Development Funds in accordance with best venture capital industry practice and in compliance with the Financial Services and Markets Act (2000). The general focus of the proposed Funds will be on development stage investments by way of expansionary capital, anticipating at least early revenue generation, scaling up and/or technology commercialisation. Deal flow is expected to emanate from NISPO (Northern Ireland Spin Out), the Co-investment fund or from halo angel investments; deals may also come directly to the Funds. Fund managers must have experience covering the investment cycle – identifying, making, managing and realising investments. Fund managers must be fully authorised and regulated under the Financial Services and Markets Act 2000. If tenderers are not FSA authorised, FSA approval will need to be put in place. In such circumstances, a copy of the FSA application must be submitted with the tender. The FSA application must be made at least 1 month prior to the tender closing date. Tenderers must provide Signed letters of Intent confirming access to sufficient private sector investment (minimum of £7.5m) alongside the Invest NI commitment to enable at least a £15m first close of the Fund within 1 month from the date when this tender is awarded.