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Ireland Strategic Investment Fund publishes strategy to become “investor of choice” for Irish companies and projects

Ireland Strategic Investment Fund publishes strategy to become “investor of choice” for Irish companies and projects

2 July 2015 – The Ireland Strategic Investment Fund (ISIF), managed by the National Treasury Management Agency (NTMA), has today published its investment strategy setting out the longterm strategic direction for the fund.

Key features of the strategy include:

Commenting on the ISIF’s strategy, ISIF Director Eugene O’Callaghan said:

“The ISIF is a large fund with over €7 billion to invest. As we will be co-investing with other parties, our investment programme could, over time, amount to up to 10% of Irish GDP.

As our size will create risks and opportunities, we will be acutely conscious of the need to remain flexible and adaptable.

We will strive to be an attractive “investor of choice” and we will use our long-term investment horizon and flexibility across the capital structure to deliver benefits that other investors cannot necessarily provide.

We are open for business and open to ideas and would encourage anyone with a suitable proposal to share their ideas with us.”

The ISIF’s investment strategy includes an illustrative asset allocation across industry sectors when fully deployed:

 

Sector€m+/- range
Total7,400
Innovation1,000+/- 200m
Real Estate based business1,000+/- 200m
SMES900+/- 200m
Infrastructure850+/- 150m
Energy800+/- 100m
Water700+/- 100m
Food and Agri500+/- 50m
Venture Capital500+/- 50m
Direct Private Equity400+/- 40m
Other750+/- 50m

The investment strategy has been approved by the NTMA Board following consultation with the Minister for Finance and the Minister for Public Expenditure and Reform. An Executive Summary of the strategy has been published at www.isif.ie.

Publication of ISIF’s first Economic Impact Report The ISIF had previously announced plans to publish a semi-annual update of the economic impact of its investments. The first Economic Impact Report, published today, shows that at the end of December 2014:

The report provides a comprehensive list of companies and projects in which the ISIF has committed investments and also provides a baseline against which the future progress of the ISIF can be assessed.

Commenting on the baseline Economic Impact Report, Eugene O’Callaghan said:

“These are encouraging figures that show the positive impact that ISIF investments have on the wider Irish economy.

They show we are making good progress in meeting our ‘double bottom line’ mandate to achieve a commercial return and support economic activity and employment in Ireland.

We expect to commit between €500 million and €1 billion to additional investments in Ireland over the course of 2015, bringing our total Irish investment commitments to between €2 billion and €2.5 billion.”

The update also provided a detailed breakdown of the sectors in which the ISIF has committed investment:

 

Sector€m
Total1,438
Venture Capital382
Water300
Infrastructure250
SME Credit200
SME Equity125
Real Estate75
Energy44
PPP32
Food and Agri30

Mr O’Callaghan said the role of the ISIF’s venture capital investments is especially important.

“Venture Capital has a critical role to play in Ireland’s economic development. While the majority of the companies that have received venture capital funding from us are generating relatively modest levels of economic activity at present, this is due to their early stage in the business life cycle. These companies have the potential, as they grow, to become large contributors to economic activity.”

Ireland Strategic Investment Fund