The funds are seeking investment opportunities which, whilst meeting their investment return and risk strategies, also have a positive economic, social and environmental impact in the UK. The funds are not reducing their risk and return requirements for these investments.
The following investment opportunities are being sought:
- Those managed by an asset manager of good standing with appropriate experienceInvestment opportunities that have appropriate risk and return characteristics suitable for the institutional investment market
- Underlying UK investments that have a positive and measurable economic impact and any associated, social or environmental impacts on communities at a local, regional or national level
- Underlying investments can include infrastructure (development and operation), business development (regeneration, education and skills, employment, venture capital), and resource management (energy, water, waste, etc
- Environmental schemes are acceptable
- A preference for the investment impact to include deprived geographical communities and areas with challenging economic and social issues
- An opportunity that will exceed £25m over the investing period
There is no requirement that one opportunity presented has to meet all of the areas of investment activity sought as described above in a “fund of funds” type approach. A “fund of funds” approach is acceptable as are opportunities that only cover a limited number of areas. Asset managers can put forward current opportunities or propose new arrangements.
Sponsoring funds are not seeking housing investments as a number of opportunities are currently already known and accessible to funds. However housing opportunities in combination with other asset types as set out in this definition will be considered, provided they are part of a suitably diverse risk and return profile that otherwise would be acceptable.
This is not an EU public procurement process, but a process to identify investment opportunities for consideration by each fund’s own in-house due diligence requirements for the selection of investments.