Expression of Interest (EOI) - Pilot Fund - Investment in Defence businesses
Tender ID: 561239
Tender Details
Tender Description
This EOI is issued in response to item 4.4 of the Defence Industry Development Strategy (DIDS) announced by The Hon Pat Conroy on 29 February 2024 which outlined:
‘The Commonwealth will look to explore with venture capital fund managers and other investors a pilot project to assess appetite, fund size and opportunities for investors to invest equity (or debt) in eligible Australian businesses who have developed Defence capability, which is identified as a priority.’
Chapter 4 of the DIDS includes commitments by the Government to encourage private investment in Australian defence industrial capabilities to complement Government investment. This includes engaging with private investors to enable them to better understand Defence’s requirements and opportunities.
The Commonwealth, through Defence and supported by other relevant agencies, is looking to explore a Pilot Fund project with venture capital fund managers and investors, institutional investors and potentially a cohort of other sophisticated investors.
It will assess appetite, fund size and opportunities for investors to invest equity (or convertible debt) in eligible Australian micro and small businesses (less than 50 employees) who have developed capabilities identified by Defence as ‘Sovereign Defence Industrial Priorities' (as identified in the DIDS). Innovative capabilities must achieve a technical readiness level between 3 and 7.
The intent is to identify where there is a gap in the market which small business cannot readily and economically access equity or debt products to further develop Defence and dual use capabilities to be able to leverage those capabilities into Australian and New Zealand Defence capability programs.
Following closing of the EOI, Defence and officials from other relevant agencies will assess responses and consider whether there is sufficient interest from a cross section of the respondents to merit further development of the Pilot Fund proposal.
Other Instructions:
Potential respondents should consider the proposal priorities and principles set out in Annex A to the conditions of EOI and the questions outlined in the Response Form: EOI Questions. Please note respondents must limit their response to less than 500 words per question.
Respondents to this EOI should be:
• Businesses with an Australian- based industrial Defence capability and who have a registered Australian Business Number (ABN); and
• Either:
- Eligible Australian Businesses who have an interest in seeking investment or debt (see paragraph 3 of Annex A); or
- Venture capital, equity or debt providers who have an interest in investment in Eligible Australian Businesses.
This EOI is to be posted on AUSTENDER and will remain open for response until 2pm Friday 2 August 2024.
Conditions for Participation:
The EOI seeks responses from:
a. Eligible Australian Businesses – those micro and small businesses (capping employee numbers at 50 persons) who can contribute to an SDIP and who will be able to meet designed ‘Eligibility Criteria’ (see clause 3); and
b. Equity and debt providers – fund managers, lenders, venture capital providers and high net worth individuals looking to provide debt or equity to those businesses.
Address for Lodgement:
Tender responses are to be submitted electronically via the AusTender website www.tenders.gov.au using the 'Lodgement Page' link on this tender notification.
Location
New South Wales : Central West : Far North Coast : Far West : Hunter : Illawarra : Mid North Coast : Murray : New England : Orana : Riverina : Southern Highlands : Sydney
Queensland : Cairns & Far North Queensland : Gladstone : Mackay Whitsunday Region : Mount Isa & North West Region : Rockhampton : South East Queensland : South West & Darling Downs : The Central West : Townsville : Wide Bay Burnett
Victoria : Barwon South West : Gippsland : Grampians : Hume : Loddon Mallee : Melbourne
South Australia : Adelaide : Eyre & Western : Far North : Fleurieu & Kangaroo Island : Limestone Coast : Murray & Mallee : York & Mid North
Northern Territory : Barkly : Big Rivers : Central Australia : East Arnhem : Greater Darwin : Top End
Australian Capital Territory
Tasmania
