A shortlist of potential managers of the SA Venture Capital Fund has been drawn up

A shortlist has been drawn up of firms in the running to manage SA’s Venture Capital Fund.

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The expression of interest process for a new manager for the South Australian Venture Capital Fund has attracted 18 applications, Treasurer Rob Lucas says.

A new manager was sought for the $50 million fund after previous manager Blue Sky was placed in administration in May.

Under the terms of the tender released mid-year however, any new manager would have to employ the former Blue Sky employees running the fund headed up by Elaine Stead.

SA Venture Capital Fund manager Elaine Stead, formerly of Blue Sky.

Mr Lucas said he could not reveal who had applied to be considered to manage the fund, and a shortlist had now been compiled.

“On 20 September, the evaluation panel short-listed applicants to progress to stage 2 of the process. For probity reasons, we cannot disclose details of the number or names of short-listed applicants,’’ he said.

“The short-listed applicants are now required to provide more detail on their planned approach, experience and capabilities to take on the management of the SAVCF.

“ These submissions are due by 28 October, following which the applicants will make presentations to the evaluation panel on 7 and 8 November 2019.

“Following assessment of the final submissions and presentations from applicants, the evaluation panel will then submit a purchase recommendation to the chief executive, Department of Treasury and Finance, for approval, before submitting a recommendation to me, as Treasurer.”

Since it started in July 2017, the fund has invested $6 million in three companies, which the government says has leveraged a further $18.09 million from co-investors.

As revealed by The Advertiser, BSVC Pty Ltd - the Blue Sky subsidiary managing the fund - was to be paid management fees ranging from $915,751 to $1,045,568 per year for the first seven years of the 15 year contract, then $703,094 per year for the remainder.

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