Tender

Procurement of Fund Management Services for University Commercialisation and Spinout Fund

THE NORTH EAST FUND LIMITED

This public procurement record has 1 release in its history.

Tender

22 Oct 2024 at 15:13

Summary of the contracting process

The North East Fund Limited is undertaking an active procurement process to appoint an FCA authorised fund management organisation for the University Commercialisation and Spinout Fund. This tender falls under the industry category of Banking and Investment Services and is located in the North East of England, encompassing regions such as Northumberland, Tyne & Wear, County Durham, and the Tees Valley. The procurement is in the tender stage and the notice was issued on 22nd October 2024, with the submission deadline set for 22nd November 2024. The contract will initially last for 10 years, with possible extensions to a maximum of 20 years. The process will follow the Competitive Procedure with Negotiation in accordance with the Public Contracts Regulations 2015.

This tender represents a significant opportunity for businesses specializing in fund management, particularly those with experience in managing venture capital or corporate finance services. The successful bidder will manage a fund aimed at driving innovation and research commercialisation in collaboration with Durham University, Newcastle University, Northumbria University, The University of Sunderland, and Teesside University. Professional fund managers with authorisation from the Financial Conduct Authority (FCA) or those capable of obtaining such authorisation will find this opportunity highly suitable. This initiative offers the potential for substantial growth by supporting high-risk, high-growth early-stage ventures arising from university research, thus positioning the fund manager at the forefront of regional economic development and innovation.

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Notice Title

Procurement of Fund Management Services for University Commercialisation and Spinout Fund

Notice Description

The North East Fund seeks to appoint a professional, FCA authorised fund management organisation to deliver a University commercialisation and spinout fund in the North East of England. The fund will invest in companies which have emerged from, or are commercialising intellectual property in conjunction with, one or more of: Durham University; Newcastle University; Northumbria University; The University of Sunderland and Teesside University (the "NE Universities"). In doing so, the Fund will drive innovation and R&D investment in the North East, including through translational research, high quality SME innovation support and the development of nationally significant assets through the promotion of the commercialisation of research and spinout creation from these research intensive institutions. The Fund has the working title of the "University Commercialisation and Spinout Fund"; its final name will be agreed with the appointed fund manager. The North East's Universities and the North East Combined Authority share an objective to drive innovation and R&D investment in the North East, including through translational research, high quality SME innovation support and the development of nationally significant assets through the promotion of the commercialisation of research and spinout creation from research intensive institutions. The Fund will support these objectives by providing risk tolerant and patient investments to relatively high-risk, potential high-growth early-stage ventures which are commercialising research and innovation activity in collaboration with one or more of the NE Universities. The appointed Fund Manager will be required to work closely and collaboratively with the NE Universities to help identify, catalyse and maximise spinout and other commercialisation activity and thereby generate deal-flow for the Fund. Significant progress has been made on commercialising research and innovation activity at the NE Universities, with collaborative programmes such as the Northern Accelerator helping to achieve over 50 spinouts in recent years. The NE Universities have developed commercialisation systems and deal terms in response to the recommendations of the Independent Spin Out Review and which are aligned with the University Spin-Out Investment Terms guide. The NE Universities have a sizable pipeline of spinout and other commercialisation opportunities which the appointed Fund Manager will gain access to, and will work collaboratively with the NE Universities to help identify those which are best suited to the Fund and have the greatest potential to achieve significant scale

Lot Information

Lot 1

Please see Section II.1.4 for a summary of the contract and the Information Memorandum, which can be downloaded from The North East Fund's website, for details. The procurement process will be conducted in accordance with the Public Contracts Regulations 2015 (as amended) using the Competitive Procedure with Negotiation as detailed in Regulation 29 of those Regulations. The purpose of this procurement is to procure the services of a single FCA regulated fund manager. The contract will have an initial duration of 10 years, but can be extended by up to a further 10 years, to 20 years in total. Please note that the contract value stated in this Contract Notice is an estimate based on assumptions regarding: the fund management fees tendered; the overall quantum of capital which will be committed to the fund; the duration of the contract and the profile of exits from and impairments to portfolio companies. As such, the ultimate fees paid under the contract could be lower or higher than the estimated contract value stated in this Contract Notice and, in particular, is likely to be higher in the event that additional capital is committed to the fund which facilitates the extension of the investment period beyond the initial 5 year period.

Renewal: The contract comprises an Investment Period and a Realisation Period, which are both initially contracted to last for 5 years but which can both be extended (by agreement) - such that the maximum aggregate duration (of Investment Period plus Realisation Period) will be 20 years.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04b047
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/034211-2024
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive procedure with negotiation
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services


CPV Codes

66100000 - Banking and investment services

66122000 - Corporate finance and venture capital services

Notice Value(s)

Tender Value
£5,500,000 £1M-£10M
Lots Value
£5,500,000 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
22 Oct 20241 years ago
Submission Deadline
22 Nov 2024Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
THE NORTH EAST FUND LIMITED
Contact Name
Not specified
Contact Email
tenders@northeastfund.org
Contact Phone
Not specified

Buyer Location

Locality
NEWCASTLE-UPON-TYNE
Postcode
NE1 3PA
Post Town
Newcastle upon Tyne
Country
England

Major Region (ITL 1)
TLC North East (England)
Basic Region (ITL 2)
TLC4 Northumberland, Durham and Tyne & Wear
Small Region (ITL 3)
TLC43 Tyneside
Delivery Location
TLC North East (England)

Local Authority
Newcastle upon Tyne
Electoral Ward
Monument
Westminster Constituency
Newcastle upon Tyne Central and West

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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