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VENTURE CAPITAL ACTION PLAN
INITIAL INFORMATION REQUEST
GENERAL PARTNER AND MANAGER OF FUND OF FUNDS
PART 1: INSTRUCTIONS
Enquiries / Additional Information
All enquiries related to this initial information request (“Initial Information Request”) are to be directed in writing or e-mail to:
Stephanie Burnett Landry
Finance Canada
12th Floor, 140 O’Connor Street
Ottawa, Ontario Canada K1A 0G5
Telephone 613-992-1427
Facsimile 613-995-7090
Teletypewriter 613-995-1455
Information relating to this selection process obtained from any other source should not be relied upon. Enquiries from candidates that are of general interest and not specific to the requestor, and subsequent responses will be recorded and will be made available to all candidates at http://www.fin.gc.ca/vcap-pacr/index-eng.asp.
Initial Information Request
A firm (a “Firm”) who is interested in participating in the selection process for the general partner and manager of one of the funds of funds to be established or recapitalized under the Venture Capital Action Plan (a “Fund”) is required to respond in writing to this Initial Information Request. A response to the Initial Information Request (“Expression of Interest”) is to be marked “Private & Confidential – Commercially Sensitive Information.”
To be considered, an electronic copy (to be e-mailed) and ten printed copies (to be couriered) of the Expression of Interest, including all appendices, must be received by Finance Canada no later than 4:00 p.m. (Eastern Time) on June 3, 2013 at the address noted above. Late submissions from a Firm may result in disqualification from the selection process.
Evaluation of Firm’s Expression of Interest
Evaluation of a Firm’s Expression of Interest will be based on a process determined by the advisory panel assembled to conduct the evaluation process in consultation with lead investors. Finance Canada or its agent may, in its discretion, conduct reference checks using a set of standard questions.
The evaluation process will take into account a Firm’s Expression of Interest. Based on this, Firms will be assessed and a shortlist of Firms will be asked to proceed to the next stage of the selection process.
Finance Canada thanks all Firms who submit Expressions of Interest, but only those who are selected to proceed further in the selection process will continue to be considered.
PART 2: INFORMATION REQUESTED
Please respond to the following requests for information in your Expression of Interest.
Overview
· Outline the investment strategy you would employ in managing a general Fund with no particular sector or industry focus or emphasis. Explain why your Firm should be selected to manage such a Fund.
· In addition, should you wish, you may also identify one or more of the following potential investment strategies for a Fund (an “Identified Investment Strategy”) your Firm is interested in being considered for: (1) an investment strategy focussed on venture capital investment opportunities in the information and communications technology sector; or (2) an investment strategy with some emphasis on venture capital investment opportunities in the life science, and/or clean technology sector.
o Explain why the Identified Investment Strategies are of interest to your Firm.
o Explain why your Firm is the right one to manage a Fund with one of the Identified Investment Strategies.
o Outline your strategy for successfully managing a Fund with one of the Identified Investment Strategies.
· Describe how your Firm has a substantial presence in Canada.
· Describe your Firm’s relevant knowledge of and experience in Canada.
· Outline your approach for raising additional commitments from private sector investors.
· Outline your management fee and profit participation expectations.
Organizational Structure, Personnel and References
· Provide a general overview of your Firm, including:
o full legal name of the Firm, address, contact information
o legal names of all other entities comprising the organization (including, management companies, general partners and funds)
o corporate chart
o organizational structure
o any general marketing brochures or materials.
· Provide a list of all partners and investment professionals (together, the “Investment Team”) and members of management of your Firm, together with their resumes.
· Provide resumes for the Firm’s partners and other key investment professionals (“Key Investment Professionals”).
· Identify the Key Investment Professionals’ experience in various funds managed by the Key Investment Professionals, including any areas of expertise.
· Identify the Canadian cities in which your Firm currently has or plans to establish an active investment office and how each of those offices is staffed with senior members of your Investment Team.
· Discuss how investment decisions of your Firm are made.
· Discuss relevant and significant personnel changes to your Firm over the past five years.
· Identify the Key Investment Professionals who would manage the Fund, including relevant expertise.
· Provide contact information for at least five personal references of each Key Investment Professional and have each of those individuals complete the Consent to Obtain and Use Information form (Appendix A).
Fund Management and Investment Track Record
· Provide a list of all current and past funds under management and for each fund provide the following:
o overview of mandate
o assets under management
o detailed information on track record and performance, highlighting key mandates, transactions and their significance in demonstrating your Firm’s management capabilities
o key limited partners
o geographic coverage
o sector or industry coverage.
· Provide a copy of your Firm’s due diligence checklist used in connection with making investment decisions in venture capital funds, together with a brief summary of the decision-making process, including any selection criteria or evaluation process.
· Provide contact information for at least two references in each of the following groups of persons, each of whom your Firm has known through mandates where your Firm acted as a fund of funds or fund manager:
o key limited partners of a fund of funds or fund
o general partners or managers of a portfolio fund in which your Firm has invested as a fund of funds manager
o member of management of a portfolio company in which your Firm has invested as a fund of funds or fund manager
o lender or co-investor in a portfolio fund or portfolio company in which your Firm has invested as a fund of funds or fund manager.
· Provide any other information you deem relevant.