Procurement of Fund Management Services for University Commercialisation and Spinout Fund

Concepts

• banking and investment
• newcastle upon tyne
• durham university
• newcastle university
• northumbria university
• teesside university
• university
• fund management organisation
• fund management services
• other commercialisation opportunities

Location

North East England: The North East of England, comprising: Northumberland; Tyne & Wear; County Durham and the Tees Valley

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

Total Quantity or Scope

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 Options

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.

CPV Codes

• 66100000 - Banking and investment services
• 66122000 - Corporate finance and venture capital services

Indicators

• Variant bids may be considered.
• This is a one-off contract (no recurrence)
• Renewals are available.
• Professional qualifications are sought.
• Staff qualifications are relevant.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. **