Pension Fund Investment London
The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Private Corporate Debt (Direct Lending) through a pooled fund vehicle.
United Kingdom-London: Pension investment services
Section I: Contracting authority
I.1)Name and addresses
Newham Dockside 1000, Dockside Road
Contact person: Rakesh Rajan
NUTS code: UKI12
Clareville House, 26-27 Oxendon street
Contact person: Gwenaelle Rose
Telephone: +44 2077478619
NUTS code: UKI11
I.4)Type of the contracting authority
Section II: Object
Pension fund investment – Private Corporate Debt (Direct Lending).
II.1.2)Main CPV code
II.1.3)Type of contract
The Pension Fund of the London Borough of Newham invites proposals for the management of an investment in Private Corporate Debt (Direct Lending) through a pooled fund vehicle. The Pension Fund of the London Borough of Newham does not wish to be contacted during the tender process. Please contact bfinance for any queries regarding the tender.
II.1.6)Information about lots
II.2.3)Place of performance
II.2.4)Description of the procurement:
Asset Class: Private Corporate Debt (Direct Lending)
Size of mandate: Approx. 110 000 000 GBP to be invested with 1 or 2 manager(s).
— Pooled Fund structure;
— Minimum Fund size 400 000 000 GBP;
— GBP share class preferred;
— Absolute return in terms of target NET IRR of 6 % to 8 %+ (net of fees);
— Looking for LIBOR +4 % to 5 %;
— Minimum hurdle of 4 %;
— Investment Horizon of 3-5 years investment period and total fund life 5-10 years.
Type of management:
— Buy-and-hold of corporate private debt.
— Primarily senior debt focus;
— Preference for 1 global manager, but the client is willing to consider two managers (1 focused on the US and 1 on Europe);
— Limited cov. light deals;
— No specific requirements in terms of duration/maturity of the loans;
— The Client has a preference to represent no more than 20 % of Fund commitments.
— Broadly diversified by asset types and sectors, concentration limits relevant to specific type of private debt.
— Bidders are required to be a regulated entity (FCA or equivalent);
— The Client would like to see demonstrable experience in the strategy, asset class, whether this is at the firm level or attributable to members of the investment team from prior firms;
— Fund should be a minimum size of 400 000 000 GBP;
— Unlevered fund only;
— At least one fund post investment period with some realizations;
— Preference for managers with a UK office or at least a dedicated UK Client Services;
— Quarterly reports, quarterly investor level capital statements, annual audited financial statements for the fund;
— Multi-managers (fund of funds) will not be considered.
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
It is intended that the contract will continue in force until such time as is determined in accordance with the provisions contained in the contract.
II.2.10)Information about variants
II.2.11)Information about options
II.2.13)Information about European Union funds
Section III: Legal, economic, financial and technical information
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
See the procurement documents.
III.1.2)Economic and financial standing
III.1.3)Technical and professional ability
III.2.1)Information about a particular profession
An institution authorised to accept deposits in the United Kingdom. Providers must be authorised under the Financial Services Act 1986 or any equivalent legislation in any EU member state. Providers must satisfy the requirements of the Superannuation Act 1972 and the Local Government Pension Scheme (Management and Investment of Funds) regulations 1998 (as amended).
III.2.2)Contract performance conditions:
See the procurement documents.
Section IV: Procedure
IV.1.1)Type of procedure
IV.1.8)Information about the Government Procurement Agreement (GPA)
IV.2.2)Time limit for receipt of tenders or requests to participate
IV.2.4)Languages in which tenders or requests to participate may be submitted:
IV.2.6)Minimum time frame during which the tenderer must maintain the tender
IV.2.7)Conditions for opening of tenders
Section VI: Complementary information
VI.1)Information about recurrence
As detailed in procurement documents.
VI.5)Date of dispatch of this notice: