MML Ireland Announces Raise of €135 Million Private Equity Fund for Investment in Irish SMEs

MML Ireland Announces Raise of €135 Million Private Equity Fund for Investment in Irish SMEs

MML Growth Capital Partners Ireland (“MML Ireland”) announces today (March 1, 2021) that following the success of its first fund, it has received commitments for its second private equity investment fund of €135 million.

The MML Growth Capital Partners Ireland Fund 2 (“Fund 2”) has been supported by leading investors including the Ireland Strategic Investment Fund (ISIF), AIB Bank, the European Investment Fund, British Business Investments and a number of large, blue-chip US institutional investors.

Led by Partners and Co-Heads of Investment Rory Quirke and Neil McGowan, MML Ireland provides growth capital to SMEs on the island of Ireland for expansion, acquisitions, re-capitalisations, MBOs and shareholder re-organisations.
MML has made 15 investments in a range of Irish businesses, deploying €125 million since its inception.

“We are very pleased to have raised €135 million in this second fund and the calibre of investors reflects the quality of the fund. The successful deployment of our initial fund and the overall performance of the investments in that fund gave us a strong launch pad for Fund 2. A number of the core investors in our initial fund are invested in Fund 2 and we welcome ISIF and British Business Investments as new partners. The involvement of both our existing and new investors reflects their interest in Ireland’s SME sector and the associated development and growth opportunities. We have already commenced deployment from Fund 2 with investments in Irish HomeCare, a Monaghan headquartered national provider of domiciliary care and in CG Power Systems Ireland, now Kyte Powertech, a Cavan based manufacturer of distribution transformers,” says Rory Quirke.

“We have always believed that there are many high-quality businesses in Ireland which, with appropriate investment and a good ownership structure, can grow and develop based on their inherent potential and the enterprise of management. This belief has been borne out by the businesses with whom we have partnered. Across sectors from healthcare to education and from insurance to engineering, the trigger for many management teams has been to re-shape and transition ownership, re-finance debt, invest in organic and acquisitive growth opportunities and open new markets. Our typical equity investment range is €5 to €15 million which enables companies to underpin development and expansion. Our portfolio companies employ over 3,000 people and combined, have revenues of circa €400 million which, in aggregate, have grown exponentially over the past six years,” says Neil McGowan.

Fergal McAleavey, Senior Investment Director of ISIF says: “This is an important fund for the Irish marketplace. ISIF participated in the first close to support the fundraising efforts and commends the MML team on reaching a €135 million Fund. ISIF’s investment in the Fund will help support the growth and recovery of SMEs as indigenous businesses emerge from the Covid-19 crisis.”

Finlay McFadyen, Head of Investment Banking in Corporate, Institutional and Business Banking, AIB says: “Ireland’s private equity and venture capital eco-system has been developing at a pace over the past number of years. Our Equity Capital team is now well positioned to co-invest in funds such as MML Ireland’s, that have a proven track record and successful investment strategy of identifying companies and entrepreneurs with growth potential and assists to create value as they transition to the next phase of their business life-cycle”.

Judith Hartley, CEO, British Business Investments: “This €15m commitment from British Business Investments will enable MML Ireland to support high growth businesses in Northern Ireland by giving them access to the finance they need to grow and prosper. By supporting capital providers such as MML Ireland, we can continue to help smaller businesses achieve their growth ambitions.”