Economic Impact

IRISH PORTFOLIO ECONOMIC IMPACT

The ISIF seeks to maximise the economic impact from investments while also ensuring that all investments satisfy its commercial return objectives.


The economic impact and employment supported by ISIF investment differs from traditional Government expenditure. With commercial investment, public resources are expected to be returned with a gain at the end of the investment period; whereas, with Government expenditure public financial resources are depleted as a result of the spending.Returned investment capital can then be recycled into additional beneficial projects.


In line with the ISIF’s “double bottom line” mandate, a key part of the ISIF’s due diligence in advance of investment is a comprehensive assessment of the additionality, displacement and deadweight potential of each transaction.

Additionality refers to the additional economic benefits to Gross Value Added (GVA) which are likely to arise as a result of the investment under consideration,over and above what would have taken place anyway.

Displacement refers to instances whereby the additionality created from an investment is reduced or made smaller at the overall economy level due a reduction in such benefits elsewhere in the economy.

Deadweight refers to instances whereby the economic benefits created from an investment would have been achieved in any event in the absence of intervention.

Post-investment, the ISIF completes a semi-annual survey of all investees to collect economic impact and employment data to enable it to monitor the economic impact progress of all investments.

Ireland Strategic Investment Fund