The Office of the Third Sector (OTS) and Capital for Enterprise Limited (CfEL) have published a request for proposals to establish one or more funds investing risk capital investment to Social Enterprises based in England.
This document sets out the objectives that OTS wishes to achieve and the restrictions that will be imposed on any fund in order that it meets its public policy objectives. Detail is provided setting out the information that will be required from those wishing to submit a proposal, the assessment criteria that CfEL and OTS will apply, and an outline timetable for the award of funding.
The assessment criteria will be based on evidence of how bidders demonstrate they will be able to meet the objectives of the fund.
OTS will commit up to £10m via funds or co-investment to achieve the following policy objectives:
* to demonstrate the viability of investment in Social Enterprises (see definition below), e.g. by encouraging an increase in the flow of independent risk capital into the equity gap;
* to improve access to equity funding for new and growing Social Enterprises that are seeking equity capital to develop their business;
* to demonstrate that there are meaningful numbers of investors interested in making commercial investment in the area of Social Enterprise and to test the terms on which they are prepared to invest; and
* to develop equity funding instruments that can be used when making investments into Social Enterprises.
Stakeholders have indicated that the 12 week period proposed in the consultation response is excessive. Consequently, unless CfEL receive representations from potential partners to revert to the original 12 week period by 10 October 2008, the closing date for proposals will be Wednesday 12 November 2008.
