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Contract Notice

Framework Agreements for Fund Management Incorporating the Midlands Engine Investment Fund.

  • First published: 08 October 2016
  • Last modified: 08 October 2016
  • Version: N/A
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Contents

Summary

OCID:
Published by:
British Business Bank
Authority ID:
AA51947
Publication date:
08 October 2016
Deadline date:
14 November 2016
Notice type:
Contract Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

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.

Full notice text

Contract notice

Section I: Contracting authority

I.1) Name and addresses

British Business Bank Investments Limited

Foundry House, 3 Millsands

Sheffield

S3 8NH

UK

Contact person: Pete Binkiewicz

Telephone: +114 2502893

E-mail: Pete.Binkiewicz@British-business-bank.co.uk

NUTS: UK

Internet address(es)

Main address: www.British-business-bank.co.uk

I.2) Joint procurement

The contract is awarded by a central purchasing body

I.3) Communication

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

http://www.delta-esourcing.com/tenders/UK-UK-Sheffield:-Financial-and-insurance-services./2WY49EC97Q


Additional information can be obtained from the abovementioned address


Tenders or requests to participate must be sent to the abovementioned address


I.4) Type of the contracting authority

Body governed by public law

I.5) Main activity

Economic and financial affairs

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Framework Agreements for Fund Management Incorporating the Midlands Engine Investment Fund.

II.1.2) Main CPV code

66000000

 

II.1.3) Type of contract

Services

II.1.4) Short 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.

II.1.5) Estimated total value

Value excluding VAT: 19 000 000.00  GBP

II.1.6) Information about lots

This contract is divided into lots: Yes

Tenders may be submitted for all lots

II.2) Description

Lot No: 1

II.2.1) Title

Equity

II.2.2) Additional CPV code(s)

66000000

66100000

66120000

66122000

66190000

II.2.3) Place of performance

NUTS code:

UKF

UKG


Main site or place of performance:

East Midlands (¿ngland), West Midlands (¿ngland).

II.2.4) Description of the procurement

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.

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: 6 500 000.00  GBP

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

Duration in months: 48

This contract is subject to renewal: No

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

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: Yes

Identification of the project:

Part funded by the European Regional Development Fund and the European Investment Bank.

II.2.14) Additional information

Lot 1 is for a framework agreement with an envisaged max of 4 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.

Lot No: 2

II.2.1) Title

Debt

II.2.2) Additional CPV code(s)

66000000

66100000

66120000

66122000

66190000

II.2.3) Place of performance

NUTS code:

UKF

UKG


Main site or place of performance:

East Midlands (¿ngland), West Midlands (¿ngland).

II.2.4) Description of the procurement

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.

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: 6 000 000.00  GBP

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

Duration in months: 48

This contract is subject to renewal: No

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

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: Yes

Identification of the project:

Part-funded by the European Regional Development Fund and the European Investment Bank.

II.2.14) Additional information

This Lot is for a Framework Agreement with an envisaged maximum of 5 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.

Lot No: 3

II.2.1) Title

Small Business Loans

II.2.2) Additional CPV code(s)

66000000

66100000

66120000

66122000

66190000

II.2.3) Place of performance

NUTS code:

UKF

UKG


Main site or place of performance:

East Midlands (England), West Midlands (England).

II.2.4) Description of the procurement

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.

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: 1 500 000.00  GBP

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

Duration in months: 48

This contract is subject to renewal: No

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

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: Yes

Identification of the project:

Part funded by the European Regional Development Fund and the European Investment Bank.

II.2.14) Additional information

This Lot is for a Framework Agreement with an envisaged maximum of 5 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.

Lot No: 4

II.2.1) Title

Proof of Concept and Early Stage

II.2.2) Additional CPV code(s)

66000000

66100000

66120000

66122000

66190000

II.2.3) Place of performance

NUTS code:

UKF

UKG


Main site or place of performance:

East Midlands (England), West Midlands (England).

II.2.4) Description of the procurement

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.

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: 5 000 000.00  GBP

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

Duration in months: 48

This contract is subject to renewal: No

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

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: Yes

Identification of the project:

Part funded by the European Regional Development Fund and the European Investment Bank.

II.2.14) Additional information

This Lot is for a Framework Agreement with an envisaged maximum of 3 suppliers. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.

Section III: Legal, economic, financial and technical information

III.1) Conditions for participation

III.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

Tenderers must be authorised by the Financial Conduct Authority as a full scope UK AIFM or a small authorised UK AIFM; or be a full scope EEA AIFM (as each of those terms is defined in the Alternative Investment Fund Managers Regulations 2013 (SI 2013/1773). If not, Tenderers will be required to confirm that they will have the relevant authorisations before bidding under a mini competition and/or have submitted the tender as a consortium with a hosting organisation for the purpose of meeting that requirement. Please see the ITT for more information and in particular regarding relying on a regulatory hosting or umbrella organisation for the authorisation.

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.2.2) Contract performance conditions

Please see the ITT for more information.

III.2.3) Information about staff responsible for the performance of the contract

Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Open procedure

IV.1.3) Information about a framework agreement or a dynamic purchasing system

The procurement involves the establishment of a framework agreement with several operators.

Envisaged maximum number of participants to the framework agreement: 17

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: 14/11/2016

Local time: 13:00

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

EN

IV.2.7) Conditions for opening of tenders

Date: 14/11/2016

Local time: 15:00

Section VI: Complementary information

VI.1) Information about recurrence

This is a recurrent procurement: No

VI.2) Information about electronic workflows

Electronic payment will be used

VI.3) Additional information

The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement. 3.1BBB is the United Kingdom's government-owned economic development bank that makes finance markets for smaller businesses work more effectively, allowing those businesses to prosper, grow and build UK economic activity. The BBB group manages and invests in access to finance programmes for smaller businesses within a single commercially-minded institution. The Authority is a wholly owned subsidiary of BBB and its purpose is to manage certain schemes for the Sponsoring Authority, including MEIF.

The Authority are purchasing the fund management services on behalf of:

(a) itself;

(b) British Business Bank Plc and any members of it's group (within the meaning of the Companies Act 2006)

(c) Midlands Engine Investment Fund; and

(d) the Sponsoring Authority being Department for Business, Energy and Industrial Strategy, the Secretary of State for Business, Energy and Industrial Strategy or the Secretary of State for Business, Innovation and Skills (in each case as the context requires) and any entity owned or controlled by the sponsoring Authority

The Authority will hold two bidder days on 17.10.2016 in Derby and 20.10.2016 in Birmingham for the purposes of presenting the opportunity under the ITT to Tenderers. Tenderers are permitted to send up to two representatives to attend a bidder day and may attend only one bidder day. Please see the ITT for further information.

Candidates wishing to apply for the contract opportunity must complete and submit its tender as set out in the procurement documents before the closing date of 14.11.2016 at 13:00.

The Authority may terminate or suspend the award process at any time without incurring any cost or liability. The Authority does not bind itself to enter into any contract arising out of the procedures envisaged by this notice. No contractual rights expressed or implied arise out of this notice or the procedures envisaged by it. The Authority will not be liable in any way to any candidate or tenderer for any costs incurred in connection with this procurement process. The Authority reserves the right to disqualify any candidate who provides information or confirmations which later prove to be untrue or incorrect; does not supply the information required by this notice or by the procurement documents or as otherwise directed by the Authority during the procurement process; or fulfills any 1 or more of the criteria stated in the procurement documents (including Regulation 57 of the Public Contracts Regulations 2015)

A tenderer will be required to agree to be audited by the UK audit bodies, the European Commission and the European Court of Auditors along with the funders and their auditors.

For more information about this opportunity, please visit the Delta eSourcing portal at:

https://www.delta-esourcing.com/tenders/UK-UK-Sheffield:-Financial-and-insurance-services./2WY49EC97Q

To respond to this opportunity, please click here:

https://www.delta-esourcing.com/respond/2WY49EC97Q

GO Reference: GO-2016105-PRO-8902253.

VI.4) Procedures for review

VI.4.1) Review body

The High Court of England and Wales

London

UK

VI.4.2) Body responsible for mediation procedures

British Business Bank

Foundry House, 3 Millsands

Sheffield

S3 8NH

UK

VI.4.4) Service from which information about the review procedure may be obtained

British Business Bank

Foundry House, 3 Millsands

Sheffield

S3 8NH

UK

Telephone: +114 2062134

VI.5) Date of dispatch of this notice

05/10/2016

Coding

Commodity categories

ID Title Parent category
66100000 Banking and investment services Financial and insurance services
66122000 Corporate finance and venture capital services Investment banking services and related services
66000000 Financial and insurance services Finance and Related Services
66120000 Investment banking services and related services Banking and investment services
66190000 Loan brokerage services Banking and investment services

Delivery locations

ID Description
100 UK - All

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.

About the buyer

Main contact:
Pete.Binkiewicz@British-business-bank.co.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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