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02 Contract Notice

Innovation Investment Fund – Procurement of a Fund Manager

  • First published: 16 November 2021
  • Last modified: 16 November 2021

Contents

Summary

OCID:
ocds-kuma6s-115881
Published by:
Cardiff Council
Authority ID:
AA0422
Publication date:
16 November 2021
Deadline date:
16 December 2021
Notice type:
02 Contract Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
No

Abstract

Cardiff Council is seeking to procure a Financial Conduct Authority (“FCA”) authorised fund manager (“Fund Manager”) on behalf of Cardiff Capital Region (“CCR”) to establish, provide certain services, and to manage the capital allocated under the innovation investment fund (“Fund”) which focuses on providing funding support to proven high growth innovative businesses looking to scale up, via patient capital or long-term investment, in the South East Wales region. The fund will be capitalised initially at 50million GBP, but will look to target a total Fund size of up to 100million GBP; including co-investment from other investors. The Fund is anticipated to be classed as an alternative investment fund and will be structured under a conventional limited partnership model under which the Fund Manager will, amongst other matters, be principally expected to: (a) provide advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable potential applicants; (c) reviewing applications, undertaking all required due diligence and marshalling the application process to determine suitability for the Fund in accordance with the prescribed investment strategy and eligibility criteria; (d) provide ongoing monitoring, scrutiny and management of investments made, reporting and highlighting any potential or actual risks arising and how these may be managed; (e)potentially, invest capital itself (or via an affiliate company) directly into the Fund (on terms to be agreed); (f) procuring co-investment for the Fund from other private and/or public sector investors; and (g) fulfilling the role of an FCA authorised fund manager for the Fund.. The Fund is anticipated to run for an initial 5 year period of investment activity, followed by up to 7 years of monitoring and management of the fund portfolio with the ability to extend by a further [2] to [3] years (on terms to be determined). CPV: 66171000, 79412000, 72221000, 79410000.

Full notice text

Contract notice

Section I: Contracting authority

I.1) Name and addresses

Cardiff Council

County Hall, Atlantic Wharf

Cardiff

CF10 4UW

UK

Telephone: +44 2920873732

E-mail: procurement@cardiff.gov.uk

NUTS: UKL22

Internet address(es)

Main address: www.cardiff.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422

I.1) Name and addresses

Blaenau Gwent County Borough Council

Municipal Offices, Civic Centre

Ebbw Vale

NP23 6XB

UK

Telephone: +44 1495311556

E-mail: procurement@cardiff.gov.uk

NUTS: UKL16

Internet address(es)

Main address: http://www.blaenau-gwent.gov.uk/

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0278

I.1) Name and addresses

Bridgend County Borough Council

Bridgend County Borough Council, Procurement Unit, Civic Offices, Angel Street

Bridgend

CF31 4WB

UK

Telephone: +44 1656642596

E-mail: procurement@cardiff.gov.uk

NUTS: UKL17

Internet address(es)

Main address: www.bridgend.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0417

I.1) Name and addresses

Caerphilly County Borough Council

Penallta House, Tredomen Park, Ystrad Mynach

Hengoed

CF82 7PG

UK

Telephone: +44 1443863161

E-mail: procurement@cardiff.gov.uk

Fax: +44 1443863167

NUTS: UKL16

Internet address(es)

Main address: www.caerphilly.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0272

I.1) Name and addresses

Merthyr Tydfil County Borough Council

Unit 5,, Triangle Business Park, Pentrebach

Merthyr Tydfil

CF48 4TQ

UK

Telephone: +44 1685725000

E-mail: procurement@cardiff.gov.uk

NUTS: UKL15

Internet address(es)

Main address: http://www.merthyr.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0347

I.1) Name and addresses

Monmouthshire County Council

County Hall, Rhadyr

Usk

NP15 1GA

UK

Telephone: +44 1633644644

E-mail: procurement@cardiff.gov.uk

NUTS: UKL21

Internet address(es)

Main address: http://www.monmouthshire.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0277

I.1) Name and addresses

Newport City Council

Civic Centre

Newport

NP20 4UR

UK

Telephone: +44 1633656656

E-mail: procurement@cardiff.gov.uk

NUTS: UKL21

Internet address(es)

Main address: www.newport.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0273

I.1) Name and addresses

Rhondda Cynon Taf CBC

The Pavilions, Clydach Vale

Tonypandy

CF40 2XX

UK

Telephone: +44 1443

E-mail: procurement@cardiff.gov.uk

NUTS: UKL15

Internet address(es)

Main address: http://www.rctcbc.gov.uk/

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0276

I.1) Name and addresses

Torfaen County Borough Council

Civic Centre, Pontypool

Torfaen

NP4 6YB

UK

Telephone: +44 1495762200

E-mail: procurement@cardiff.gov.uk

NUTS: UKL16

Internet address(es)

Main address: www.torfaen.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0498

I.1) Name and addresses

Vale of Glamorgan Council

Civic Offices, Holton Road

BARRY

CF63 4RU

UK

Telephone: +44 1446700111

E-mail: procurement@cardiff.gov.uk

NUTS: UKL22

Internet address(es)

Main address: http://www.valeofglamorgan.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0275

I.2) Joint procurement

The contract involves joint procurement

I.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge at:

https://supplierlive.proactisp2p.com


Additional information can be obtained from the abovementioned address


Tenders or requests to participate must be sent electronically to:

https://supplierlive.proactisp2p.com


Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at:

https://supplierlive.proactisp2p.com


I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Innovation Investment Fund – Procurement of a Fund Manager

Reference number: ERFX 1007681

II.1.2) Main CPV code

66171000

 

II.1.3) Type of contract

Services

II.1.4) Short description

Cardiff Council is seeking to procure a Financial Conduct Authority (“FCA”) authorised fund manager (“Fund Manager”) on behalf of Cardiff Capital Region (“CCR”) to establish, provide certain services, and to manage the capital allocated under the innovation investment fund (“Fund”) which focuses on providing funding support to proven high growth innovative businesses looking to scale up, via patient capital or long-term investment, in the South East Wales region. The fund will be capitalised initially at 50million GBP, but will look to target a total Fund size of up to 100million GBP; including co-investment from other investors. The Fund is anticipated to be classed as an alternative investment fund and will be structured under a conventional limited partnership model under which the Fund Manager will, amongst other matters, be principally expected to: (a) provide advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable potential applicants; (c) reviewing applications, undertaking all required due diligence and marshalling the application process to determine suitability for the Fund in accordance with the prescribed investment strategy and eligibility criteria; (d) provide ongoing monitoring, scrutiny and management of investments made, reporting and highlighting any potential or actual risks arising and how these may be managed; (e)potentially, invest capital itself (or via an affiliate company) directly into the Fund (on terms to be agreed); (f) procuring co-investment for the Fund from other private and/or public sector investors; and (g) fulfilling the role of an FCA authorised fund manager for the Fund.. The Fund is anticipated to run for an initial 5 year period of investment activity, followed by up to 7 years of monitoring and management of the fund portfolio with the ability to extend by a further [2] to [3] years (on terms to be determined).

II.1.5) Estimated total value

Value excluding VAT: 65 000 000.00  GBP

II.1.6) Information about lots

This contract is divided into lots: No

II.2) Description

II.2.2) Additional CPV code(s)

79412000

72221000

79410000

II.2.3) Place of performance

NUTS code:

UKL


Main site or place of performance:

South East Wales

II.2.4) Description of the procurement

Cardiff Capital Region (CCR) City Deal is a 1.1bn GBP economic growth programme which was agreed in 2016 between UK Government, Welsh Government and ten local authorities in South East Wales (the "Region") to bring about significant economic growth in the Region through investment, upskilling, and improved physical and digital connectivity. The CCR local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff Council, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and Vale of Glamorgan.

In furtherance of the City Deal core objectives, CCR is seeking to establish a 50 million GBP Fund that will provide funding support to high growth innovative businesses looking to scale up, via patient capital or long-term investment, in the South East Wales region. The Fund is anticipated to be classed as an alternative investment fund and will be structured under a conventional corporate limited partnership model. The Fund Manager will be engaged under a bespoke fund manager services contract to be entered into with the general partner or another corporate entity (once established by or on behalf of CCR). CCR, however, reserve the right to engage the Fund Manager directly or via an alternative corporate structure (to include a corporate joint committee if and when established by CCR). CCR anticipates that the duration of the Fund Manager's services contract will align with the duration of the Fund.

The term of the Fund is anticipated to be for an initial 5 years of investment activity, followed by up to 7 years of monitoring and management of the fund portfolio, with the possibility of an extension by CCR for further period(s) of up to 2 - 3 years. The appointed Fund Manager will be expected to procure co-investment capital for the Fund, and for individual investments, either directly and/or via other public and/or private sources. The target total level of investment commitments to the fund is 100 million GBP, including co-investment from other investors. The principal objectives of the Fund, investment products, investment criteria, eligibility criteria and target outputs are set out in the Investment Strategy which has been issued as part of the Draft ITPD alongside this Contract Notice.

CCR is seeking to commission an FCA authorised fund manager to, amongst other matters, help market the Fund, source and originate investment opportunities, source investment from other investors and a pipeline of applicants, undertake due diligence on applicants and (acting as the general partner) manage the capital allocated under the Fund. It is intended that CCR will invest 50 million GBP into the Fund at the outset to fund the initial 5 years of investment activity which is to be supplemented by co-investment capital. The full scope of services is set out in Fund Manager Services Contract which has been issued as part of the Draft ITPD alongside this Contract Notice.

CCR is now inviting suitably qualified candidates to submit a response to the standard selection questionnaire (SQ) for this contract opportunity. Details of where to obtain the SQ and other documentation being released at this stage can be found in Section I of this contract notice.

The contract value for this opportunity is an estimated range of 10m GBP - 65m GBP. The range has been calculated using market comparator rates for profit and fund activity.

II.2.5) Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6) Estimated value

Value excluding VAT: 65 000 000.00  GBP

II.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 180

This contract is subject to renewal: Yes

Description of renewals:

The minimum term will be 12 years with the discretion for CCR to extend the services contract for a period or periods up to a further 2 + 1 years in total.

II.2.9) Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 3

Objective criteria for choosing the limited number of candidates:

As set out within the SQ.

II.2.10) Information about variants

Variants will be accepted: No

II.2.11) Information about options

Options: No

II.2.13) Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: No

II.2.14) Additional information

Please note, the estimated value at II.1.5 and II.2.6 is based on the maximum 15 year duration of services.

Section III: Legal, economic, financial and technical information

III.1) Conditions for participation

III.1.2) Economic and financial standing

Selection criteria as stated in the procurement documents


III.1.3) Technical and professional ability

Selection criteria as stated in the procurement documents


III.2) Conditions related to the contract

III.2.1) Information about a particular profession

Participation is reserved to a particular profession: Yes

Reference to the relevant law, regulation or administrative provision:

Provider must be FCA registered and maintain this authorisation throughout the contract

III.2.2) Contract performance conditions

Please refer to the draft contract, the form of which is being made available as part of the Draft ITPD from the address at 2.4

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Competitive dialogue

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.2) Time limit for receipt of tenders or requests to participate

Date: 16/12/2021

Local time: 12:00

IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates

Date: 17/01/2022

IV.2.4) Languages in which tenders or requests to participate may be submitted

EN

IV.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of tender)

Section VI: Complementary information

VI.1) Information about recurrence

This is a recurrent procurement: No

VI.3) Additional information

To register your interest in this notice and obtain any additional information please visit https://supplierlive.proactisp2p.com ERFX1007681

CCR is conducting this procurement in accordance with the Public Contracts Regulations 2015 as amended, and successor legislation which may follow, using the competitive dialogue procedure as set out in Regulation 30. Following assessment of SQ submissions, CCR intends to shortlist [3] candidates to be invited to participate in dialogue. Please see the SQ for further details. CCR then intends to conduct a focussed and effective dialogue stage with the aim of enabling bidders to submit a final tender that meets CCR’s requirements. The Draft ITPD is being issued with the Contract Notice for information only and contains information on the anticipated procurement process and draft contract terms.

Candidates are solely responsible for their costs and expenses incurred in connection with this procurement. Under no circumstances (including circumstances where CCR cancels or varies the procurement) will CCR or Cardiff Council or any of its advisers be liable for any costs or expenses borne or incurred by the candidates or their advisers.

NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at https://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=115881.

Under the terms of this contract the successful supplier(s) will be required to deliver Community Benefits in support of the authority’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The Community Benefits included in this contract are:

PLEASE SEE TENDER DOCUMENTATION

(WA Ref:115881)

The buyer considers that this contract is suitable for consortia.

VI.4) Procedures for review

VI.4.1) Review body

High Court

Royal Courts of Justice, The Strand

London

WC2A 2LL

UK

Telephone: +44 2079477501

VI.4.3) Review procedure

Precise information on deadline(s) for review procedures:

In accordance with the Public Contract Regulations 2015, CCR will incorporate a minimum 10 calendar days standstill period from the date information on award of contract is communicated to bidders.

VI.5) Date of dispatch of this notice

16/11/2021

Coding

Commodity categories

ID Title Parent category
72221000 Business analysis consultancy services Systems and technical consultancy services
79410000 Business and management consultancy services Business and management consultancy and related services
66171000 Financial consultancy services Financial consultancy, financial transaction processing and clearing-house services
79412000 Financial management consultancy services Business and management consultancy services

Delivery locations

ID Description
1017 Bridgend and Neath Port Talbot
1022 Cardiff and Vale of Glamorgan
1015 Central Valleys (Merthyr Tydfil, Rhondda Cynon Taf)
1016 Gwent Valleys (Torfaen, Blaenau Gwent, Caerphilly)
1021 Monmouthshire and Newport

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

Document family

Notice details
Publication date:
16 November 2021
Deadline date:
16 December 2021 00:00
Notice type:
02 Contract Notice
Authority name:
Cardiff Council
Publication date:
10 February 2023
Notice type:
03 Contract Award Notice - Successful Supplier(s)
Authority name:
Cardiff Council

About the buyer

Main contact:
procurement@cardiff.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

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