---
title: "Innovation Investment Fund - Procurement of a Fund Manager"
ocid: "ocds-h6vhtk-02f740"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02f740"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02f740.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02f740.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "CARDIFF COUNCIL"
published: "2023-02-10"
---

# Innovation Investment Fund - Procurement of a Fund Manager

Buyer: CARDIFF COUNCIL  
Current stage: Award  
OCID: ocds-h6vhtk-02f740

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## Summary

Cardiff Council is seeking to procure a Fund Manager for the Innovation Investment Fund on behalf of Cardiff Capital Region to establish, provide services, and manage the allocated capital under the fund. The fund targets high growth innovative businesses in South East Wales with an initial capital of 50 million GBP, aiming for a total size of up to 100 million GBP. The Fund Manager will play a crucial role in strategy finalization, applicant sourcing, due diligence, investment management, and co-investment procurement in an alternative investment fund model. This tender stage has been completed, and the associated contract has been valued between 10m GBP - 65m GBP.

This tender creates opportunities for fund management and financial consultancy firms looking to engage in a long-term investment project supporting innovative businesses in South East Wales. Firms with expertise in alternative investment funds, financial consultancy services, and business management consultancy are well-suited to compete. Cardiff Council is the buying organisation, and the procurement stage is currently at an active status, following the selective method under a competitive dialogue process. The deadline for this tender was on February 10, 2023, with a contract value of 7,875,000 GBP signed on January 9, 2023.

## Notice

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. 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.

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.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/004111-2023 |
| Notice type | Tender Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Competitive dialogue |
| Tender suitability | Not specified |
| Awardee scale | Large |
| All stages | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 10 Feb 2023 |
| Submission deadline | 16 Dec 2021 |
| Future notice date | Not specified |
| Award date | 9 Jan 2023 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £65,000,000 |
| Lots value | £65,000,000 |
| Awards value | Not specified |
| Contracts value | £7,875,000 |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| 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 |
| Locality | CARDIFF |
| Post town | Cardiff |
| Postcode | CF10 4UW |
| Country | Wales |
| ITL 1 | TLL Wales |
| ITL 2 | TLL5 South East Wales |
| ITL 3 | TLL52 Cardiff and Vale of Glamorgan |
| Local authority | Vale of Glamorgan |
| Electoral ward | Castleland |
| Westminster constituency | Vale of Glamorgan |
| Delivery location | TLL Wales |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | PWC |

## CPV Codes

### 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

### Codes

- 66171000 - Financial consultancy services
- 72221000 - Business analysis consultancy services
- 79410000 - Business and management consultancy services
- 79412000 - Financial management consultancy services

## Release History

- 10 Feb 2023 at 08:36 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/004111-2023
- 16 Nov 2021 at 16:35 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/028625-2021

## Notice URLs

- http://www.blaenau-gwent.gov.uk/
- http://www.bridgend.gov.uk
- http://www.caerphilly.gov.uk
- http://www.cardiff.gov.uk
- http://www.merthyr.gov.uk
- http://www.monmouthshire.gov.uk
- http://www.newport.gov.uk
- http://www.rctcbc.gov.uk/
- http://www.torfaen.gov.uk
- http://www.valeofglamorgan.gov.uk
- https://supplierlive.proactisp2p.com
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0272
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0273
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0275
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0276
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0277
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0278
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0347
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0417
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422
- https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0498

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02f740. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02f740.json.