Innovation Investment Fund Program (IIF) (Round Three) - Freq...

. The calculation to measure a fund's underperformance will only be utilised after year three of
    a fund's life. Provisions relating to underperformance will be included in a fund's governing
    documents and will be subject to consideration by the Program Delegate.

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How long do successful Fund Managers have to make investments?

A. A licensed fund will have five years after the granting of a licence to make new investments. 
    Investment after that time must only be follow-on investments unless approval is granted by
    the Program Delegate under specific circumstances. The Program Delegate's decision will be
    subject to advice from the IR&D Board.

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What is the level of carry for current funds established under the IIF Program?

A. Current funds take 20 per cent carry from the 90 per cent profit allocated to private
    investors. As with previous rounds, this will be negotiable between the fund manager and
    private investors for the current round of the program.

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Can a parallel fund be set up to invest along side a fund established under the IIF
    Program Round Three?

A. Yes. Applicants should ensure that parallel funds have adequate resources to ensure
    operational requirements are met.  As well, appropriate conflict of interest provisions would
    need to be put in place between the funds. 

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Funds established under the IIF Program will be managed by private sector fund managers.
    Each fund manager will be licensed by the Australian Government and will be subject to
    conditions regarding investment activities and fund operations specified in licence agreements
    and associated investor documents. Fund managers will be responsible for making
    investment decisions and will invest in companies throughout Australia.

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