We are seeking to invest in transactions where we can make a difference, where the Fund’s characteristics can enable commercial investment transactions with positive economic impact and can make it an attractive “investor of choice” for company and project sponsors and advisors.
The overarching purpose of the Fund is to invest “on a commercial basis in a manner designed to support economic activity and employment in the State”. This unique mandate reflects a shift from being a Sovereign Wealth Fund focussed solely on wealth creation, to a Sovereign Development Fund with a “Double Bottom Line” objective. In other words, our success will be measured by both investment returns and economic impact achieved.
The Fund has a long-term focus and will target the majority of its capital towards investments which build on the productive potential of the economy and the enterprise sector. It will seek to attract co-investment partners to invest alongside it, thereby increasing the economic impact of its resources.
In considering investments the Fund will seek to promote economic additionality (benefits to GDP which arise as a result of the investment) while avoiding deadweight (where the economic impacts would have been achieved in any event in the absence of the investment) and displacement (where the investment will simply substitute for existing economic activity).
The NTMA is required to determine, monitor and keep under review an investment strategy for the assets of the Ireland Strategic Investment Fund (other than directed investments) in accordance with the Fund’s statutory investment policy of investing on a commercial basis in a manner designed to support economic activity and employment in Ireland.
The Fund uses a fundamental and rational approach to investing which backs strong entrepreneurial ideas and management teams that produce additional economic benefit to Ireland without displacing existing businesses or funders from the market. Investment returns are required to be commensurate with the risk involved in the transaction and comparable with the returns of a similar risk profile available elsewhere.
Key to the Fund’s approach is to develop strong partner relationships that are long term and strategic in nature, and to be constructive in helping Irish companies to grow, achieve value and resolve specific challenges.
The active involvement of entrepreneurs, business owners and co-investors will be critical to the unique investment process and deal flow of the Fund.
Opportunities will be originated from a wide variety of sources. In addition to proactive targeting of investment in priority areas by the ISIF team, the NTMA’s door is open for stakeholders to approach us at any stage.