U.S. Small Business Administration, Office of Procurement and Grants Management, 409 3rd Street, SUITE 5000,5th Floor, Washington, D.C. 20416

A -- POST-VENTURE CAPITAL DISTRIBUTION MANAGEMENT SERVICES SOL SBAHQ-97-R-0014 DUE 072897 POC Dionna Martin (202) 205-7029 The Investment Division of the U.S. Small Business Administration (SBA), which administers the Small Business Investment Company (SBIC) program, is seeking qualified sources that would interested in providing post-venture capital distribution management to the SBA for marketable securities which are distributed to it by SBICs. The SBIC program is a private sector led partnership with the government. SBICs invest in small businesses in the United States using capital raised from private sources supplemented with funds borrowed from the SBA. The SBIC program currently represents $6.4 billion of long tern capital that has been invested in U.S. based small businesses. As of June 2, 1997, there were 285 active SBICs with $4.8 billion of private capital and $1.6 billion of SBA funding. Ninety-one of these, respresenting $1.2 billion of proviate capital, were licensed since October 1, 1993. Further, there are an additional 73 applications currently in process. Last year SBICs provided $1.6 billion of long term capital investments to more than 2,000 small businesses located in 48 states. As the SBIC program continues to expand, increasing amounts of investments will be made in small businesses. Those investments will ultimately mature and pay off. In those instances, certain SBICs are required to make distributions to the SBA. These distributions may be made in cash or marketable securities. The SBA expects that over the next three (3) years the dollar amounts of distributions it will receive in the form of marketable securities will increase substantially. Consequently, the SBA will have a need for assistance in the management and disposition of the marketable securities that it will reeive through those distributions. THIS IS NOT A REQUEST FOR COMPETITIVE PROPOSALS. The purpose of this notice is to develop a list of qualified firms to fulfill the Government's minimum requirements. The SBA desires to enter into a contractural arrangement with an organization which is knowledgeable about and proficient in the evaluation and trading of thinly traded equity securities and which has experinece in the management of venture capital distributions. The organitzation should have the ability to demonstrate significant experience in several related areas, including research on publicly traded venture-backed companies, the valuation of those companies, experience in trading illiquid and thinly-traded stocks and experience in designing and implementing administrative support systems for distribution management activities. It should be able to demonstrate significant client experience in the management of in-kind distributions from venture capital partnerships to third party clients, including large pension funds, large endowments and other institutional clients. Ideally, the organization should possess at least 10 years experience offering distribution management services to limited partners of venture capital firms; 10 years experience in the design and implementation of sell/hold investment strategy plans for corporations, pension funds, retirement plans, endowments, foundations and wealthy individuals; experienced and full-time staff dedicated to the managmenet distributed assets; 10 years experience in the research of venture capital backed companies prior to the IPO process, including company and industry fundamentals, competition and management. Capabilities should include the ability to conduct field research on valuations of the venture-backed companies; 10 years experience in the desing, implementation and operation of administrative support and information systems dedicated to distribution management clients; 10 years experience in the trading of illiquid and thinly traded stocks, in cluding experience in the trading of stock of venture capital backed companies; experience in the selection of distribution agents, the establishment of custodial accounts for institutional clients and the logistics and controls required in the transfer of marketable securities; experience in the coordination of the distribution agents and the custodian receipt and controls of marketable securities; and, administrative support and information systems specifically designed to monitor the transfer and accounting of securities distributions. Organizations having the required expertise and capabilities are invited to submit complete information discussing such capabilities. Information furnished should include an outline of specific related experience. The information provided will pertain to this synopsis only. Any interested organization must submit appropriate data in two copies by July 28, 1997. The Government does not intend to pay for the information solicited or received. Respondents will not be notified of any conclusions related to the source data received, nor will a source list be provided. No telephone or fax request for this solicitation package will be accepted. (0177)

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