Request for Expressions of Interest: Fund Manager
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June 27, 2018
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Expressions of Interest
Summary
For transparency reason, questions & answers sent to the EOI inbox are displayed hereunder:
Question 1 :Can a consortium of 2 partners firms be submitted
Answer: If the Expression of interest is a group of legal entities that will form or have formed a joint venture, consortium or association at the time of the submission of the proposal, they shall confirm in their proposal that : (i) they have designated one party to act as a lead entity, duly vested with authority to legally bind the members of the joint venture jointly and severally, and this shall be duly evidenced by a duly notarized Agreement among the legal entities, which shall be submitted along with the proposal at the second stage of the selection process i.e. at the stage of the interviews (i.e. not necessary at the submission June 29th); and (ii) if they are awarded the Partnership agreement, the agreement shall be entered into, by and between UNCDF and the designated lead entity, who shall be acting for and on behalf of all the member entities comprising the joint venture.
Question 2: For section 5, Is the number of words restriction (300-400 – half page) for the each of the sections (5.1, 5.2, 5.3) or for each of the sub sections (5.1.1, 5.2.1 ... etc)?
Answer:The word restriction refers to the subsections 5.1.1, 5.1.2…etc. consequently each section i.e. 5.1, 5.2…etc is therefore allowed to be longer.
Question 3: Is UNCDF open to innovative ideas for a fund structure or does UNCDF want a more traditional fund structure ?
Answer: UNCDF would be interested in innovative structures. UNCDFs pipeline will need a combination of different types of return seeking capital. Innovation may be one way of addressing this. However, in the end UNCDF will assess which fund structure UNCDF thinks is most likely to succeed, traditional, innovative or a combination.
Question 4: Is there a portal into which we need to log in and submit responses to the specified questions, along with appropriate documentation? If not, do you have a preferred format? Would you prefer a word doc, a powerpoint deck, both?
No portal is available and all formats are accepted (doc,ppt,pdf),according to the applicants preferences.
Question 5: Will UNCDF commit to the first loss capital in the proposed Fund during the first closing? And if yes, how much would this be?
UNCDF will help the fund manager to facilitate fundraising from third parties, mainly from UNCDF’s network of donors which, if successful, could provide first loss capital to the Fund. UNCDF may be in the position provide some capital to the fund as well, but in such case only a very small amount. See also 3.3.
Question 6: What is the targeted amount of invested capital which UNCDF has in mind for this LDC Investment Fund?
The first close is suggested to reach 20 MUSD, and 50 MUSD as a second close.
Question 7: Can you please clarify further on the form of contribution expected from the Fund by UNCDF under Section 5.3 of the Request for Expressions of Interest?
We understand the difficulties in indicating a specific amount. From 2.4 you can see what services UNCDF will provide to the Fund manager. Please reason around the principles for reimbursing UNCDF for the work benefitting the Fund manager.
Question 8 :In the EOI, in 2.2 it says “The objective of the Fund is to support UNCDF’s efforts to leverage its pipeline of high‐impact opportunities” what does it mean
It essentially refers to the fact that UNCDF has a pipeline and not enough funding to support the companies’ growth. The Fund can complement the work UNCDF has done by providing the needed capital. It is also possible that UNCDF may co-invest with the Fund in some of the investment opportunities from its own balance sheet. It will most likely be in smaller amounts.
Question 9 :Why is it a two-step process?
The second step include interviews and the purpose is to understand the ability and willingness of a potential Fund manager to co-create a fund concept with the UNCDF. The responsibility of setting up the Fund will then rest with the selected Fund manager.
Question 10: Is it correct to assume that UNCDF shall play the lead role as the Limited Partner and “Anchor” or “Sponsor” the Fund with a small capital investment to set up the Fund along with the Fund Manager/General Partner? Also, please clarify the amount UNCDF and the General Partner/Fund Manager are each expected to invest separately to set up the Fund.
Answer: It is correct that UNCDF will help raise capital to the fund through its network, which may be complementary to the network of capital providers the Fund manager has. It may also be possible that UNCDF will be able to contribute with its own funds, however it will only be a smaller amount. UNCDF cannot take the role as a Limited Partner for legal reason. Further details about the economics of the Fund need to be discussed and agreed in the interviews.
Question 11:What is the difference in “annual accounts” (section 4.2.2.) and the “audits” (section 4.2.4.)?
Audits are ‘audited and certified account statements ( by auditors) , and annual accounts are just company accounts without certification.
Question 12 : Do institutions with a narrower investment focus ( fewer thematic and geographic coverage ) still able to have a chance in the selection process?
The scoring methodology is rewarding institutions with broader investment experience compared to more focused institutions, however an important parameter is also how the investment experience (and institution more broadly) match with UNCDF’s investments. The better match the higher score.
PROPOSED PARTNERSHIP
Objective of the Partnership
The objective of the partnership is to help advance the 2030 Agenda for Sustainable Development through an innovative public-private approach that will seek to mobilize additional financial resources from multiple sources for SDG-positive investments, primarily for the LDCs. Against this background, UNCDF seeks to partner with the Fund Manager who will establish, structure, fundraise for, and manage a private investment fund whose purpose is to further and support the SDGs. The details of the partnership will be reflected in a separate agreement between the two parties.
Objective of the Investment Fund
The objective of the Fund is to support UNCDF’s efforts to leverage its pipeline of high-impact opportunities to assist companies in LDCs in working towards achieving the SDGs, with capital provided into the Fund from semi-commercial and/or philanthropic capital, ggpotentially combined with official development assistance. In doing so, the intent is to find a business model for the Fund that generates the risk-adjusted rewards expected by the selected partner, UNCDF, and potential investors. The objective is also to create a private fund with the ability to take on relatively high-risk investments sourced through UNCDF and produce a better pipeline of investable projects to larger number of commercial players in the same ecosystem.
CONDITIONS
During the selection process, the contracting party (UNCDF) is not permitted to discuss documentation, proposals, evaluation, or other such matters with potential partners in a manner which favors or disfavors any of the candidates. Questions regarding the attached documents must be directed to UNCDF at uncdf.eoi@uncdf.org no later than June 25, 2018. A compilation of relevant questions and answers will be published on UNCDF’s website at www.uncdf.org/expression-of-interest-fund-manager. Each potential partner must ensure that it reads the answers to the questions, together with any other information, which may be published on the above-mentioned website during the period of this exercise.
Proposed Timing
Launch of the expression of interest
May 25, 2018
Deadline for submitting an expression of interest
June 29, 2018
Assessment and ranking of the expression of interests
July 11, 2018
Interviews with the top candidates
August 6-10, 2018
Notice of partnershipAll candidates will be notified by e-mail as soon as possible after a decision has been made to partner with one of the candidates.
A notice does not mean that a binding contract has been entered into between UNCDF and the winning party. A contract is not legally binding until it has been signed by both parties.
- The expression of interest must be submitted electronically via uncdf.eoi@uncdf.org.
- The expression of interest must be signed by the interested party. Scanned signatures are accepted.
- The response and all documentation appended must be in English and contain the information indicated in this expression of interest.
Appendix Documents
Appendix 1: Presence in LDCs
Appendix 2 Strategic Framework (2018-2021)
Appendix 3: Theory of Change
Appendix 4: Aggregate Overview of Global and Regional Programmes
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Publish Date:May 25, 2018