Award

Innovation Investment Fund - Procurement of a Fund Manager

CARDIFF COUNCIL

This public procurement record has 2 releases in its history.

Award

10 Feb 2023 at 00:00

Tender

16 Nov 2021 at 00:00

Summary of the contracting process

The Cardiff Council is seeking to procure a Fund Manager for the Innovation Investment Fund with a total value of £65 million. This selective procurement opportunity, conducted through competitive dialogue, aims to support high-growth innovative businesses in South East Wales. The Fund, capitalised at £50 million initially and potentially up to £100 million, will focus on scaling businesses via patient capital. The Fund Manager is expected to finalise the investment strategy, monitor investments, and secure co-investment from other investors. The tender deadline for submissions is 16th December 2021.

This tender offers a significant opportunity for fund management companies specialising in the financial services sector to engage with the public sector. Businesses with expertise in alternative investment funds and experience in managing large-scale investment portfolios would be well-suited to compete. The Cardiff Capital Region City Deal initiative aims to bring about economic growth through investment in innovation, creating a dynamic environment for business expansion and development. Successful bidders will have the chance to work closely with public authorities and contribute to the economic development of the region.

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Notice Title

Innovation Investment Fund - Procurement of a Fund Manager

Notice 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).

Lot Information

Lot 1

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

Renewal: 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.

Publication & Lifecycle

Open Contracting ID
ocds-kuma6s-115881
Publication Source
Sell2Wales
Latest Notice
https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=115881
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
OJEU - F3 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive dialogue
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

72 - IT services: consulting, software development, Internet and support

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

66171000 - Financial consultancy services

72221000 - Business analysis consultancy services

79410000 - Business and management consultancy services

79412000 - Financial management consultancy services

Notice Value(s)

Tender Value
£65,000,000 £10M-£100M
Lots Value
£65,000,000 £10M-£100M
Awards Value
Not specified
Contracts Value
£7,875,000 £1M-£10M

Notice Dates

Publication Date
10 Feb 20233 years ago
Submission Deadline
16 Dec 2021Expired
Future Notice Date
Not specified
Award Date
9 Jan 20233 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

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

Contracting Authority (Buyer)

Main Buyer
CARDIFF COUNCIL
Additional Buyers

BLAENAU GWENT COUNTY BOROUGH COUNCIL

BRIDGEND COUNTY BOROUGH COUNCIL

CAERPHILLY COUNTY BOROUGH COUNCIL

MERTHYR TYDFIL COUNTY BOROUGH COUNCIL

MONMOUTHSHIRE COUNTY COUNCIL

NEWPORT CITY COUNCIL

RHONDDA CYNON TAF CBC

TORFAEN COUNTY BOROUGH COUNCIL

VALE OF GLAMORGAN COUNCIL

Contact Name
Rebecca Morris
Contact Email
contact@monmouthshire.gov.uk, morrirl@caerphilly.gov.uk, procurement@blaenau-gwent.gov.uk, procurement@caerphilly.gov.uk, procurement@cardiff.gov.uk, procurement@merthyr.gov.uk, procurement@newport.gov.uk, procurementteam@bridgend.gov.uk, purchasing@rctcbc.gov.uk, rmalcolm@valeofglamorgan.gov.uk, stephen.chambers@torfaen.gov.uk
Contact Phone
+44 1443, +44 1443863161, +44 1446700111, +44 1446709767, +44 1495311556, +44 1495762200, +44 1633644644, +44 1633656656, +44 1656642596, +44 1685725000, +44 2920873732

Buyer Location

Locality
CARDIFF
Postcode
CF10 4UW
Post Town
Cardiff
Country
Wales

Major Region (ITL 1)
TLL Wales
Basic Region (ITL 2)
TLL5 South East Wales
Small Region (ITL 3)
TLL52 Cardiff and Vale of Glamorgan
Delivery Location
TLL Wales

Local Authority
Vale of Glamorgan
Electoral Ward
Castleland
Westminster Constituency
Vale of Glamorgan

Supplier Information

Number of Suppliers
1
Supplier Name

PWC

Further Information

Notice Documents

  • https://www.sell2wales.gov.wales/search/show/search_view.aspx?ID=NOV379661
    Innovation Investment Fund - Procurement of a Fund Manager - 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).
  • https://www.sell2wales.gov.wales/search/show/search_view.aspx?ID=FEB427290
    Innovation Investment Fund - Procurement of a Fund Manager - 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).

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        "id": "ocds-kuma6s-115881-tender-129041-ERFX 1007681",
        "title": "Innovation Investment Fund - Procurement of a Fund Manager",
        "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).",
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        "procurementMethodDetails": "Competitive dialogue",
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        "submissionMethod": [
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        "tenderPeriod": {
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                "id": "NOV379661",
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                "title": "Innovation Investment Fund - Procurement of a Fund Manager",
                "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).",
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                "title": "Innovation Investment Fund - Procurement of a Fund Manager",
                "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).",
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                "description": "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.. Please note, the estimated value at II.1.5 and II.2.6 is based on the maximum 15 year duration of services.",
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        "contractTerms": {
            "performanceTerms": "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"
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            "bidValidityPeriod": {
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            "id": "66171000",
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        },
        "reviewDetails": "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.",
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            "scheme": "CELEX"
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            "value": {
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                "currency": "GBP"
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            "dateSigned": "2023-01-09T00:00:00Z"
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        {
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