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Dept of Trade and Industry

Answer

Mr. Don Foster: To ask the Chancellor of the Exchequer, pursuant to his answer of 7 May 2002, Official Report, column 33W, on the Community Development Venture Fund, if he will place in the Library the performance indicators and targets that will be used for Bridges Community Ventures to measure performance. [61815] Nigel Griffiths: I have been asked to reply. The Fund Manager's performance will be primarily measured against: (i) Commitment of the Fund within the seven year investment period, with at least 70 per cent. fully invested and the remainder committed to related follow on investment deals. (ii) At least a 10 per cent. IRR across a portfolio of between 50 to 60 investment deals. (iii) Investment deals being made in businesses located in the 25 per cent. most deprived qualifying wards in England, the business plans of which aim to: (a) Create/safeguard that at least 35 per cent. of the employees of such businesses are from qualifying wards, or, (b) Stimulate other businesses (e.g. supply chain) with at least 50 per cent. of non-salary expenditure going to local businesses in qualifying wards, or, (c) Serve local people and businesses in qualifying wards-- i.e. core target for services and products. The Government, along with the other investors in this pilot Fund, expects the Fund to achieve social, as well as investment, returns. An independent specialist will be engaged to evaluate social impact and assess the Fund's performance in helping achieve:- Wealth creation in deprived areas;- Creation of good jobs in fast growing businesses Developing entrepreneurial role models and, Encouraging others in the venture capital supply market to spread their investments into the more deprived areas.

Secondary information

Type

Written question

Reference

61815; 388 c286W;388 c285-6W

Session

2001-02

Subjects

Disadvantaged Investment Standards Community Development Venture Fund

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk