Advice in Global Private Equity procurement

Transcription

1 1(12) Advice in Global Private Equity procurement Contract Reference: 2015/57 Contents Advice in Global Private Equity procurement Introduction Brief information on AP Scope of the Tender and specification of Assignment Scope of the Tender Specification of Assignment Description of the process and timetable Process Timetable Conditions and Information required for participation in the tender Examples of evaluation criteria and weightings Statutory Conditions Financial capacity Objective selection criteria for the tender invitation Confirmation of requirements Contact at AP How to submit your application Appendix Appendix 1: Registration obligations, payment of taxes and social security contributions etc

2 2(12) 1 Introduction The objective with this document is to give a description of the Assignment of Advice in Global Private Equity procurement. Applications to submit tenders regarding the procurement of Advice in Global Private Equity procurement for the Seventh Swedish National Pension Fund (AP7), which was advertised in ted.europa.eu on 29/6/2015 (ref. 2015/57)., shall be made in accordance with the procedure set out in this document. Please note that your application must be received no later than 20/8/2015 in the form and with the information as described in this document. 2 Brief information on AP7 AP7 is the government option in the Swedish Premium Pension System. AP7 manages the default fund, Såfa, within this system. The pension assets comes from investors who have not actively selected a pension fund manager or who want the government managed long-term pension saving plan. So far three million Swedes have taken up this option. AP7 Såfa is a portfolio of funds consisting of an equity fund and a fixed income fund, managed according to a life cycle approach. AP7 also provides three other fund portfolios with varying risk/return profiles. The equity AUM at year end 2014 amounted to roughly SEK 250 billion. Since inception the investments have outperformed the capital weighted returns of other active funds in the Premium Pension System. The basic structure of the equity fund is a passive global portfolio with an additional exposure of 50% through leverage. These two parts make up the beta exposure in the equity fund. The passive global part is managed by external managers. In addition to the management of the equity beta the fund has appointed a limited number of Private Equity and active alpha managers. The benchmark of the equity fund is the MSCI All Country World Index ( ACWI ). The fund applies SRI related investment universe restrictions. The fixed income portfolio is invested mainly in Swedish government and mortgage bonds with a duration of approximately 2 years. With 25 employees, AP7 is a small and efficient organisation that only manages assets internally in markets where it has the ability to be among the best. Given the size of the organisation, the vast majority of the assets are being managed externally and AP7 aims to use the best fund managers, independent suppliers and consultants. Further information about AP7, including organisation and structure can be found at 2

3 3(12) 3 Scope of the Tender and specification of Assignment 3.1 Scope of the Tender AP7 is in the process of retendering its Private Equity managers, thus the need of Private Equity tender Advise as described in this document. The current Private Equity portfolio is divided among three external managers investing through separate accounts and fund of funds. The three managers have different mandates on geography and strategy. One is focused primarily on the US market and one on the European market, the third manager has a global focus. All managers cover most of the Private Equity strategies except from infrastructure and credits. In the retender AP7 is looking for 3-4 managers that will be able to handle the existing structure, i.e. a portfolio structure split on 3-4 mandates. However, the managers appointed should be able to meet potential needs of flexibility in terms of customization, geography and strategy. The duration of the contract will be for a time frame of 3 years with option of two further extensions of two years each. The quantity of scope in the contract is at the end of 2014 approximately commitments of 10 bn SEK during 2016 and 2017, conditional upon the development of AP7 s assets under management and assumptions of growth as well as stress testing and the regulatory framework. After 2017 the commitments to PE investments are expected to grow with the funds assets. During the procurement process all documents and relevant information is subject to an absolute procurement confidentiality. This means that no disclosure of such information can take place until a contract has been awarded or the procurement has been terminated for another reason. It shall also, however, be mentioned that AP7 is a central government authority and its operations are therefore covered by the Swedish open government principle. Among other things, this means that all documents are normally accessible to any individuals who wish to see them, i.e. confidentiality cannot be guaranteed. Any party that wishes to take part in this procurement must accept this condition in its co-operation with AP7. Furthermore, as a general rule AP7 only enters into agreements governed by Swedish law. 3

4 4(12) 3.2 Specification of Assignment Advice on selection of Private Equity managers Make a negotiated procedure in line with EU-regulations Responsibility of administration and necessary documentation around the tender process Review and second opinion on RFP Prepare electronic RFP and other required documents of use in tender process Identify long list of managers Present report on RFP result and identification of short list of managers Organize selection interviews Discussion of short list candidates and recommendations of finalists Assist in the finalisation of managers contracts 4 Description of the process and timetable 4.1 Process The procedure for this tender will be an Open Tendering Procedure. The tendering process will be in accordance with the Swedish Public Act (2007:1091 LOU) on the coordination of procedures for the award of public contracts, public supply contracts and public service contracts. The Act is largely based on the Council Directive 2004/18/EC of 31 March Please contact advisepetender@ap7.se for any queries regarding the Assignment or process issues. Where relevant, answers to individual questions will be anonymised and communicated to all tenderers. The final date for submitting questions will be on the10th of August AP7 cannot guarantee that answers to questions received later than ten days prior to the final tender date will be provided. AP7 may invite qualified tenderers for interviews. 4

5 5(12) 4.2 Timetable 29/06/2015 Tender publication on ted.europa.eu 10/08/2015 Deadline for questions about this tender 20/08/2015 Deadline for submitting the tender responses to AP7 September 2015 Due diligence meetings with selected advisors to be held in Stockholm Q Final selection of appointed advisor and completion of contract The advisor assignment shall start shortly after the contract has been signed and the time table of the procurement procedure shall follow the steps indicated below in a negotiated procedure. It is important that the advisor has the resources indicated in the proposal available from the date below. 1) The tender should be published by AP7 on ted.europa.eu, 16/10/2015 2) Interested managers shall submit letters of interest at the latest on, 23/11/2015 3) A detailed RFP should be sent out to selected managers on, date To Be Decided 4) The short list for interviews shall be presented to AP7 on, date - TBD 5) Managers shall have been selected before, date - TBD 6) Contract negotiations shall be concluded before, date TBD 5 Conditions and Information required for participation in the tender Tenders will be evaluated in two stages. In the first stage, an evaluation will be made of whether the Tenderer fulfils the Conditions required of the Advisor below. In addition the tenderer shall not have any potential conflicts of interest, an assessment of potential conflicts of interest will be made. In this assessment, an evaluation will be made, based on the following information provided by the Tenderer: - Ownership structure of the company - A description of the company s asset management activities, if any - A description of relations with potential competitors within the premium pension system - Any other information of relevance to an assessment of potential conflicts of interest 5

6 6(12) If these requirements are not satisfied, the Tender will be rejected. Those tenders that satisfy the conditional requirements above will be evaluated on the following grounds: AP7 will accept the most economically advantageous tender, taking into account the following factors: 1. Competence and ability to perform the assignment 2. Price Competence refers here to the collective relevant competence of those individuals who are primarily expected to work on the assignment for AP7. The assessment will be based on the following information that the Tenderer shall provide: - The number of years of experience in manager searches with special attention to mandates of similar features - The number of people who will be working with this assignment - CVs of team members appointed to the project and a specification of what task, duties and involvement each of them will have Assessment of the ability to perform the assignment will be based on the following information that the Tenderer shall provide: - A specification of the type of analysis to be provided and how the process will be organised. - A description of any relevant similar assignments where the team members have been involved - A list of clients that the team members have worked with in the relevant area, including a list of references - Other information that is believed to be relevant for the Seventh Swedish National Pension Fund in its selection of an Advisor All terms and remuneration, fees and expenses shall be clearly outlined in the tender. 6

7 7(12) 5.1 Examples of evaluation criteria and weightings Organisation and Asset class expertise 30% - The aim of this section is to assess the knowledge about Private Equity and ability to analyze managers track record Ability to provide suitable product and resources 25% - This Award criterion aims to decide how the advisor will be able to structure the analysis and documentation throughout the process. Representativeness / Quality of track record 20% - The advisors track record in similar assignments with the proposed team members. Price 25% - The fees quoted will be weighed against competence and ability to perform the assignment in order to identify the most economically advantageous proposal. 6.1 Statutory Conditions In order to qualify for participation in the tender process, tenderers must meet the statutory conditions set out below. Tenderers will need to confirm this in the Minimum Requirements section. AP7 will exclude a tenderer from participation in the procurement procedure if the tenderer is subject to the following circumstances in accordance with chapter 10 article 1 of the Swedish Public Procurement Act: 1. such crime as referred to in Article 2 of the Joint Action of 24 October 2008 adopted by the Council under title V of the Treaty on European Union, on making it a criminal offence to participate in a criminal organisation in the Member States of the European Union (1) (2008/841/JHA); 2. corruption as defined in Article 3 of the Council Act of 26 May 1997 drawing up, on the basis of Article K.3 (2) (c) of the Treaty on European Union, the Convention on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union and Article of the Joint Action of 22 December 1998 adopted by the Council on the basis of Article K.3 of the Treaty on European Union, on corruption in the private sector (98/742/JHA); 7

8 8(12) 3. fraud within the meaning of Article 1 of the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities financial interests; or 4. money laundering as defined in Article 1 of the Council Directive of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering 91/308/EEC, amended by Directive 2001/97/EC of the European Parliament and of the Council. If the tenderer is a legal person, the tenderer will be excluded if a representative of the legal person has been convicted for any of the crimes mentioned in items 1-4 above and the judgment has gained legal force. A tenderer can also be excluded in accordance with chapter 10 article 2 in of the Swedish Public Procurement Act if the tenderer: 1. is bankrupt or is being wound up, is under compulsory administration or is the subject of a composition or has indefinitely stopped their payments or is subject to a prohibition on conducting business, 2. is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or composition or any other similar proceedings, 3. has been convicted by a judgment which has the force of res judicata for an offence relating to professional practice, 4. has been guilty of grave professional misconduct and the contracting authority can prove this, 5. has not fulfilled their obligations relating to social insurance charges or tax in their own country or in the country where the procurement is being conducted, or 6. in some essential respect has failed to provide information requested or provided incorrect information required pursuant to the provisions stated in this chapter. If the tenderer is a legal person, the tenderer may be excluded if a representative for the legal person has been sentenced for an offence referred to in the first paragraph, item 3 or committed such an error as referred to in the first paragraph, item 4. 8

9 9(12) For complete definitions of basis for exclusion see the legislation at hand. Tenderer s own confirmation regarding Grounds for disqualification from participation in the procurement: It is hereby confirmed that the tenderer, as well as representatives for the company, are not subject to any of the circumstances listed in Grounds for disqualification from participation in the procurement. Yes Note that AP7 may verify that the tenderer is not subject to any of the circumstances listed above Financial capacity The tenderer shall have a financial capacity that is sufficient for carrying out the services following this tender Objective selection criteria for the tender invitation The objective is to establish whether bidders are qualified to provide the services of Advice in Global Private Equity procurement. Proposals will be evaluated using the scoring methodology described below. Scoring Methodology Score Description 0 Not acceptable: has failed to show evidence of Experience/ Competence 1 Detrimental response: limited or poor evidence of Experience/ Competence 2 Less than acceptable response: lacks convincing evidence of Experience/ Competence 3 Acceptable response: evidence shown of Experience/ Competence 4 Above acceptable response: demonstrates good evidence of Experience/ Competence 5 Excellent response: demonstrates significant Experience/ Competence 9

10 10(12) The evaluation criteria and weightings are outlined below: Factor Organisation and Asset class expertise Ability to provide suitable product and resources Representativeness / Quality of track record Price Primary Criteria Weighting (%) 30% 25% 20% 25% Corresponding Questions Described in section 5. Described in section 5. Described in section 5. Described in section 5. Total 100% Each of the above factors will be scored on a 0-5 basis as per the evaluation methodology outlined in the Scoring Methodology table above. The final score of each bidder is a weighted average according to the above weights. Following this stage of the evaluation, bidders will be ranked and the top scoring managers will be taken through to the award stage. 7. Confirmation of requirements Finally we would like you to confirm that you fulfil the requirements set in LOU chapter 10 for this assignment, including specification set out in Appendix Contact at AP7 Contact person at AP7 regarding this assignment is; Per Olofsson, Head of Alternative Investments For any queries regarding the assignment or process issues, please contact advisepetender@ap7.se 10

11 11(12) 9. How to submit your application Tenders are to be submitted as a paper original and with an electronic copy on CD/DVD or memory stick (readable in MS Office format, PDF format or the equivalent). If the documents differ between the original and the copy, the written original shall take precedent. The tender must be received no later than 20/8/2015. at: AP7 Vasagatan 11 Box Stockholm, Sweden If a tenderer intends to submit its tender personally or by messenger, AP7 reception normally closes at 5 p.m. weekdays and is closed on all public holidays. Tenders are to be packaged in sealed envelopes/packages labelled Advice in Global Private Equity procurement. Tenderers will not be compensated for costs owing to the preparation of the tender. Tenders may not be submitted by fax or as . Tenders shall be submitted in English. Official documents can be submitted in other languages. Tenders shall be binding until January 2016 which shall be confirmed in the tender in writing. Note that the application must be signed by an authorized signatory within your firm. 11

12 12(12) 10. Appendix Appendix 1: Registration obligations, payment of taxes and social security contributions etc. The consultant shall fulfil requirements set in Sweden or in its home country with regard to registration, taxation and social security contribution obligations. The consultant shall hold such registration which is required to supply services that are subject to this procurement. The consultant shall have the required permissions and be authorised to supply services that are subject to this procurement throughout the duration of the agreement. The consultant may not have incurred debts for social insurance contributions or taxes in Sweden or in its own country that have led to a debt being registered with the Swedish Enforcement Authority or the corresponding authority in its home country. This requirement is not applicable to such debts that pertain to negligible amounts or similar circumstances. Consultant s own confirmation, fulfilment of obligations regarding registration, payment of taxes and social security contributions etc.: It is hereby confirmed that the consultant firm fulfils the requirements set out above regarding registration, taxation and social security contribution obligations. Yes Note that AP7 may verify the information by requesting copies of registration certificates concerning the companies in question and certification from the Swedish Tax Agency (SKV 4820) or equivalent certifications from a foreign authority. Consultant shall be prepared to provide current documents if AP7does not have the possibility of obtaining these itself. 12