ACAN - Training services related to private equity and limited partnership investing

Definition: Advance Contract Award Notice (ACAN): An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services, or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a statement of capabilities. If no supplier submits a statement of capabilities that meets the requirements set out in this ACAN, on or before the closing date stated in this ACAN, the contracting officer may then proceed with the award to the pre-identified supplier. Requirement: The Department of Foreign Affairs, Trade and Development (DFATD) has a requirement for the provision of in-depth training services related to private equity and limited partnership investing. A limited partner is an investor that provides capital for a private equity fund managed by a general partner. The training will enable the innovative and climate finance teams to understand their role as a limited partner and how limited partnership structures can enable the department to more effectively work with the private sector, understand due diligence concepts, Know Your Client rules, and other particularities specific to private equity. The training will fill a knowledge gap for DFATD as it will provide critical training on the needs, challenges, legal considerations and interests of Limited Partners as investors in private markets. Scope of Work: The contractor must provide two (2) online foundational courses in private equity, as well as an in-depth two (2) day workshop on private equity specifically for limited partners. The work will also involve providing necessary material and ongoing access to research and industry trends, through an online platform. Services and activities must include the following: Design and offer two introductory, online courses on the fundamentals and economics of private equity. These two courses must be able to be performed asynchronously by participants. Design a workshop to include tailored engagement with and for DFATD project leadership, which is to be complemented by the relevant/supporting documents and artefacts. The consultant will also develop the communication materials, if needed, aimed at the participants. The consultant may engage experts and stakeholders, as necessary. Deliver a workshop by experienced facilitators/experts. Participants will include leaders and/or key officials, with the aim of synthesizing and sharing learnings and outcomes with the broader groups of stakeholders. The consultant will supply the agenda and provide the materials to be circulated. Wrap up the workshop, which includes the provision of relevant workshop output documentation and debriefing. Confirmation of point of contact for industry expertise and future collaboration if needed must also be set up. Deliverables: The Contractor must carry-out to the satisfaction of the Technical Authority, the following deliverables: Online Asynchronous Introductory Courses - Fundamentals of Private Equity & Economics of Private Equity: Approximately 20-25 participants will independently complete introductory courses online to provide foundational training and bring participants up-to-speed in preparation for live, in-person learning. The courses are detailed below and must contain the listed sub-topics. 1. Fundamentals of Private Equity Course Outline: 1.1 Private Equity Key Terms: Key terms and definitions commonly used in Private Equity. 1.2 Private Equity Structure & Investment Process: How Private Equity is structured and steps in the investment process. 1.3 Private Equity Roles: The different roles and staffing needed for a Private Equity program 1.4 Private Equity Characteristics: Key characteristics, benefits and challenges of Private Equity investing. 1.5 Private Equity Strategies: Main types of Private Equity investment strategies and how to differentiate. 1.6 Regulatory & Legal Protections: The role of regulatory bodies in protecting investors and market integrity. 2. Economics of Private Equity Course Outline 2.1 Private Equity Fees and Profit Distribution: Fee types as well as flow and order of profit distribution. 2.2 General Partner Economics: How private equity economics impact the general partner. 2.3 Portfolio Selection: Considerations for developing an investment portfolio including diversification and ESG. 2.4 Measuring Performance with Quantitative Metrics: Define key quantitative performance indicators and their differences 2.5 Benchmarks: The purpose and types of benchmarks and how to use them for evaluation 2.6 Monitoring Managers & Reporting: Guidelines for interacting with managers and monitoring performance In-Person Faculty Led Onsite Comprehensive Course – Private Equity for the Limited Partner: Approximately 20-25 participants will attend live 2-day event in Ottawa at DFATD facility for broad based program covering all key aspects of the private equity investment process. 3. Private Equity for the Limited Partner Course Outline 3.1 Background of Private Equity: Evolution of private equity, basics of private equity, private equity vs. other investments, compare and contrast different private equity strategies 3.2 Common Success Factors in Private Equity Investments: Hallmarks of consistently successful managers, manager investment strategy (origination, underwriting, execution), post-acquisition (adding value + optimization of exit), understanding General Partner economics and assessing manager alignment 3.3 Legal Aspects of Private Equity Funds: Fund structures & jurisdictions, Key components of fund documentation, Securing key terms aligned with Limited Partnership Best Practices. 3.4 Finding + Evaluation the Best Fund Managers: Evaluating manager investment strategies, Assessing manager teams & practices, Understand manager track record and attribution analyses 3.5 Conducting Due Diligence: Best practices for optimizing (virtual) onsite manager meetings, Portfolio company valuations, Evaluating operating risk 3.6 Integrating Limited Partnership best practices into negotiation strategy (fund governance, alignment of interest, additional concerns), Negotiation exercise - Apply these best practices to key provisions within the Limited Partner Agreement (LPA) 3.7 Benchmarking & Performance Monitoring: Differentiating among performance metrics and models, Qualitative performance measures to monitor, Leveraging the Limited Partner Advisory Committee to monitor and manage performance 3.8 Reporting & Transparency: GP reporting obligations and resources available for LP use, Understanding the audit process and report, Taxation considerations Criteria for Assessment of the Statement of Capabilities (Minimum Essential Requirements): Any interested supplier must demonstrate by way of a statement of capabilities that its service meets all the following requirements: Contractor Experience: i. A minimum of 15 years' experience with private equity practitioners that are active and in the industry that can provide robust knowledge, insights and advice based on tangible international experience uniquely tailored to limited partners needs. ii. A minimum of 15 years' experience working within complex, limited partnership structures involving both public and private sector investors. iii. In-depth knowledge and expertise of structuring limited partnership transactions in multiple jurisdictions that also involve multilateral development banks, development finance institutes, and the private sector, in the context of supporting sustainable development and the use of blended finance. iv. A minimum of 15 years of regulatory experience and knowledge of current industry trends, jurisdictional issues and legal developments as it relates to limited partner investors in private markets. v. Ability to provide training on Know Your Client regulatory requirements1 and legal documentation required for private equity transactions to be processed appropriately. vi. Ability to provide training that explains the role and perspective of the Limited Partner within a limited partnership transaction, such as, assessing the worthiness of the investment and associated risks and liabilities that the Limited Partner investor could face, the relationship and activities between the Limited Partner investors and the General Partner, and the Limited Partner investor’s responsibilities and rights throughout the life of a private equity investment. vii. Experience in providing training to include tailored engagement with and for DFATD project leadership, which is to be complemented by the relevant/supporting documents and artefacts. viii. Experience and current capacity to maintain and deliver an online platform, including private equity curriculum, limited partner material and industry trends. regulatory developments and an online knowledge sharing platform for limited partners to interact directly, chat and network within a secured, confidential space. Applicability of the trade agreement(s) to the procurement: This procurement is not subject to any trade agreements. Justification for the Pre-Identified Supplier: Global Affairs Canada intends to enter into a sole source contract with Institutional Limited Partners Association (ILPA) for in-depth training services related to private equity and limited partnership investing. ILPA is reasonably believed to be the only association that meets the mandatory essential criteria noted above, and offers courses and access to resources through membership, specifically in the context of private equity investing through limited partnerships. ILPA offers an online platform to deliver training, with online networking and chatting capability for limited partners to discuss the challenges and topics most relevant to them and share resources, along with pre-prepared materials, which is valuable to limited partners’ learning and success in private equity transactions. Government Contracts Regulations Exception(s): The following exception to the Government Contracts Regulations is invoked for this procurement under subsection 6(d) - "only one person is capable of performing the work.” Ownership of Intellectual property: No intellectual Property will be created in the performance of the work under this Contract. Period of the proposed contract: The proposed contract is for a period of six months from the date of contract award. Cost estimate of the proposed contract: The total estimated value of this requirement must not exceed US$60,000 (tax exempt). Name and address of the pre-identified supplier: Legal Name: Institutional Limited Partners Association (ILPA) Office Address: 1776 I Street N.W. Suite 525, Washington, DC 20006 Suppliers' right to submit a statement of capabilities: Suppliers who consider themselves fully qualified and available to provide the goods, services or construction services described in the ACAN may submit a statement of capabilities in writing to the contact person identified in this notice on or before the closing date of this notice. The statement of capabilities must clearly demonstrate how the supplier meets the advertised requirements. Closing date for a submission of a statement of capabilities: The closing date and time for accepting statements of capabilities is: Closing Date: December 5, 2024 Closing Time: 2:00PM EST Inquiries and submission of statements of capabilities: Inquiries and statements of capabilities are to be directed to the Contracting Authority listed below: Name: Grant Bott Title: a/Team Leader, Development Contracting Services Department: Global Affairs Canada E-mail: •••••@•••••.•••Sign up to see this detail