Section C - PWS.pdf

Performance Work Statement Private Equity Investment Advisors

Background U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. For more information on DFC and its programs see www.dfc.gov.

Performance Work Statement The Office of Investment Finace (OIF) will require non-personal private equity advisor services involving due diligence of funds and strategic planning, portfolio construction, and other research. The equity advisors will support the departments’ work in reviewing and performing virtual, and potentially on-site, due diligence of funds and managers vetted and approved by DFC’s screening committee. Once funds are identified and applications are reviewed and vetted by the Evaluation and Screening Committees, DFC may solicit task order quotes from some or all awardees.

Additionally, the Office of Equity Investments (OEI) will require non-personal private equity advisor services involving due diligence of direct equity investment opportunities and other research. The equity advisors will support the departments’ work in reviewing and performing virtual, and potentially on-site, due diligence of the target company and management vetted and approved by DFC’s screening committee. Once target companies are identified and applications are reviewed and vetted by the Screening Committees, DFC may solicit task order quotes from some or all awardees.

The Advisor/Contractor will assist the Agency in performing due diligence and/or strategic planning, portfolio construction, and other research on the specific proposed fund and fund managers including, but not limited to, any of the following sectors and regions:

Energy: covers a wide range of energy-related activities. For example, Energy Category Program Activities could be related to renewable energy power generation projects, including solar power, wind power, geothermal power, and hydropower projects. The Energy Category also covers other types of power generation projects and energy storage. This category also includes electricity transmission and distribution projects. Oil and gas sector projects constitute another type of project that could be covered under the Energy Category.

Agriculture: covers a wide range of agriculture, forestry, and aquaculture activities. Agriculture Category Program Activities could be related to any aspect of farming, forestry, or aquaculture, and also could cover the storage, transportation, and sales of agriculture, forestry, and aquaculture products. This category also covers food processing activities.

Banking and Financial Services: covers a wide range of work concerning commercial lenders, investment funds, microfinance institutions, and other types of banking and financial services entities. This category includes activities connected to lending to small and medium enterprises, as well as various other types of financing activities.

Health Care: covers a wide range of health care sector activities, including, but not limited to, the construction, expansion, and operation of health care facilities, the facilitation of medical supply manufacture and distribution, and provision of certain types of health care services.

Telecommunications and Information Technology: covers a wide range of telecommunications and information technology activities. For example, activities in this category could be connected to the development or expansion of mobile telecommunications networks, digital connectivity, or cybersecurity.

Other Infrastructure and Business Activities: covers all types of activities not covered in any of the five categories described above. For example, the Other Infrastructure and Business Activities Category could include activities concerning housing, water and wastewater, transportation, manufacturing, mining, and hotels and hospitality.

Geographic Areas

Funds may target specific countries, regions, or global strategies, and are expected to invest predominantly in DFC-eligible countries (please see www.DFC.gov for a list of DFC-eligible countries http://www.dfc.gov/

A. DESCRIPTION OF SERVICE CATEGORIES: services required consist of three broad categories; 1) Due Diligence of Funds 2) Due Diligence of Direct Equity Investments and 3) Strategic Planning, Portfolio Construction, and other Research.

1. Due Diligence of Funds: At any time, DFC may request the assistance of a Contractor or Contractors in conducting specific, targeted due diligence of specified Fund Manager candidates and fund proposals.

DFC will issue Task Orders as needed to Contractors to conduct these due diligence reviews. The Contractor will assist the Agency in performing due diligence on the specific proposed funds and fund managers including but not limited to the following:

Assist in conducting customary, comprehensive due diligence on each of the manager’s proposed funds consistent with DFC’s underwriting criteria, and prepare a comprehensive written report to DFC that provides an in-depth qualitative and quantitative analysis of each manager’s investment track record and portfolio, highlighting their returns as compared to vintage year benchmark statistics; an analysis of key company results; and a critique of the consistency of the manger’s investment strategy. For each proposed fund, the Contractor shall also review the manager’s investment team, its organization, its investment process, fund management capabilities, the proposed structure and terms of the proposed fund, the manager’s professional references and other issues deemed relevant by DFC or the Contractor.

Participate as a resource to DFC, including participation at one or more Evaluation Committee meetings, or other necessary meetings, at DFC headquarters in Washington, D.C. Prior approval by the Contracting Officer’s Representative (COR) will be required for any additional travel.

It is anticipated that travel may be required to the Fund Manager’s offices in the United States and/or abroad; this will be determined by DFC in consultation with the Contractor. The Contractor should factor in their bid price due diligence meetings domestically and overseas, if such visits are deemed necessary to complete the Scope of Work.

Deliverables may include a comprehensive, written due diligence report on the Fund Manager’s proposed fund covering the key factors mentioned above in a format satisfactory to DFC. In addition to the track record and team analysis mentioned above, the report should also include a SWOT analysis and the Contractor’s investment recommendation to DFC.

2. Due Diligence of Direct Equity Investments: DFC may require additional advisory services or research including review of direct equity investments. Such tasks may include but are not limited to the following:

• Due Diligence on Direct Equity Investment Opportunities: This may include in-depth analysis on company strategy, management strengths, financial performance and forward-looking projections, valuation, and terms. Due diligence on direct equity deals will conclude with a comprehensive written report detailing the above-mentioned areas and a review of investment merits and risks

3. Strategic Planning, Portfolio Construction, and other Research: DFC may require additional advisory services or research including review of co-investments. Such tasks may include but are not limited to the following:

• Due Diligence on Co-investment Opportunities: This may include in-depth analysis on company strategy, management strengths, financial performance and forward-looking projections, valuation, and terms. Due diligence on co-investment deals will conclude with a comprehensive written report detailing the above-mentioned areas and a review of investment merits and risks.

• Strategic Review and Asset Allocation: Assessment and recommendations regarding DFC’s Investment Funds program, portfolio performance, processes, and products, and forward-looking strategic plan and overall market assessment.

• Process and Organization Review: Review of OIF organization and process and recommendations in keeping w/ industry standards.

• Portfolio Construction: Assist DFC in analytical support regarding portfolio construction, performance, allocation and diversification considerations.

• Customer Survey: Survey of GP’s and/or LP’s as requested

• Product assessment: Assessment of market acceptance of DFC’s products for Investment Funds, including its revised terms and insurance for LP’s.

• Identify Aligned U.S. investors: Help DFC identify like-minded U.S. institutional investors with an appetite for emerging markets private equity investing and assess their interests and perceptions of risk and return with the goal of making them aware of DFC products, funds, and activities in emerging markets.

• Sector Research and Investigation into Liquidity Matters Related to Distressed Funds: Activities may include but are not limited to travel to country, interviews with portfolio companies, interviews with fund managers, on-site research of sector and ecosystem, investigation of secondary market opportunities, among others. Advisor to provide recommendations as needed.

B. DESCRIPTION OF SERVICES REQUIRED

The services required for individual IDIQ Task Orders Due Diligence reviews of specified Fund Managers and Fund Proposals as assigned may include some or all of the following:

TASKS OTHER REQUIREMENTS

Review of proposals submitted online by pool of applicants (“Candidates”); As assigned, DFC may require a Scoring Matrix and/or Summary Reviews of select Candidates

DFC may provide a specified number of proposals for initial review

Provision and/or review of Secondary Questionnaires provided to Fund Managers

On site and/or virtual due diligence of Fund Managers as assigned in conjunction with Investment Funds team members and other DFC staff

May require overseas travel w/ DFC Investment Funds team

Final Report and Recommendation to DFC Evaluation Committee and Investment Funds Team and participation as a resource at DFC Evaluation Committee meetings

May require travel to Washington, DC

The services required for individual IDIQ Task Orders for Strategic Due Diligence of Direct Equity Investments and other research as requested may include some or all of the following:

ASSIGNMENT REQUIREMENT

Direct Equity Investments: Due diligence on direct equity investment opportunities which may include in-depth analysis on company strategy, management strengths, financial performance and forward-looking projections, valuation, and investment terms. Direct equity investment projects will conclude with a comprehensive written report detailing the above-mentioned areas, detailed reference checks, and a review of investment merits and risks.

The services required for individual IDIQ Task Orders for Strategic Plan, Portfolio Construction, Program Assessment, Client Survey, and other research as requested may include some or all of the following:

ASSIGNMENT REQUIREMENT

Co-investment: Due diligence on co-investment opportunities which may include in-depth analysis on company strategy, management strengths, financial performance and forward-looking projections, valuation, and investment terms. Co-investment projects will conclude with a comprehensive written report detailing the above-mentioned areas, detailed reference checks, and a review of investment merits and risks.

Strategic Review: Assessment and recommendations regarding DFC’s Investment Funds program, portfolio performance, processes, and products, and forward-looking strategic plan and overall market assessment.

DFC to provide underlying data

Portfolio Construction: Assist DFC in analytical support regarding portfolio construction, performance, allocation and diversification considerations.

DFC to provide underlying data

Customer Survey: Survey of GP’s and/or LP’s as requested Product assessment: Assessment of market acceptance of TUF;

levered facility; insurance for investment funds product

Process and Organization Review: Review of OIF organization and process and recommendations in keeping w/ industry standards

Market survey of potential US LP interest: Identify US investors with an appetite for emerging markets private equity investing and assess their interest and perception of risk and return and awareness of DFC’s products, funds, and activities in emerging markets.

Sector research and investigation into liquidity matters related to distressed funds: Activities may include but are not limited to travel to country, interviews with portfolio companies, interviews with fund managers, on-site research of sector and ecosystem, investigation of secondary market opportunities, among others.