Ireland Strategic Investment Fund publishes 2020 update

• Investment returns of 6.2% in 2020, an increase of over €500m
• Over €1.5bn in investment gains since inception in 2015, an annual return of 3.1%
• Over €430m committed to investments in Ireland during 2020, bringing total investment commitments in Ireland to €5bn across 143 investments
• Over 90% of ISIF commitments in 2020 followed the establishment of the new Pandemic Stabilisation and Recovery Fund, which has a further €600m in potential pipeline transactions

Monday 8 February 2021

The Ireland Strategic Investment Fund (ISIF), managed by the National Treasury Management Agency (NTMA), has today published an update on its 2020 investment performance.

The update shows ISIF generated an investment return of 6.2% in 2020, an increase in value of over €500m, driven primarily by ISIF’s exposure to global funds that committed to investments in Ireland.

In total ISIF has now generated in excess of €1.5 billion in investment gains since inception, bringing the total value of the Fund to €8.6 billion.

The Fund has generated an annualised investment gain of 3.1% per annum since January 2015.

Commitments to investments in Ireland

During 2020 ISIF committed €430m to over 20 investments in Ireland.

At the end of 2020 ISIF has committed a total of €5 billion to 143 Irish investments, in line with its “double bottom line” mandate to invest on a commercial basis to support economic activity and employment in Ireland.

This investment has acted as a catalyst to attract co-investment totalling €8.6 billion from private sector and third-party investors in ISIF-backed projects – bringing total investment commitments in Ireland arising from ISIF’s investments to €13.6 billion.

This co-investment multiple of €1.7m private sector co-investment for every €1m committed by ISIF significantly exceeds ISIF’s target at inception of €1m co-investment for every €1m committed by ISIF.

€2bn Pandemic Stabilisation Recovery Fund (PSRF)

The PSRF was announced in May 2020 as part of the Government’s package of economic and societal supports in response to the Covid pandemic.

ISIF has allocated €2 billion for deployment from the PSRF to support businesses that have been impacted by the pandemic and to invest in their recovery phase.

Direct and indirect investments in pandemic-impacted businesses from May 2020 accounted for 90% of ISIF’s investments in 2020. Commitments include investments in Aer Lingus, daa, Finance Ireland and tourist accommodation provider, Staycity.

In addition, ISIF is currently working on a pipeline of over €600m in potential investments from the PSRF.

The Minister for Finance, Paschal Donohoe TD, said:

“During 2020, ISIF continued to support economic activity and employment in Ireland despite the challenges of a global pandemic. In fact, since the Government’s decision to establish the Pandemic Stabilisation and Recovery Fund, over 90% of ISIF’s commitments have backed businesses directly impacted by COVID-19. This has made the Fund an important component in the Government’s support measures for Irish businesses.

“Over a uniquely challenging period, ISIF’s €430 million in investments in 2020 means that it has now made investments totalling €5 billion attracting private sector co-investment totalling €8.6 billion. ISIF’s successful investment strategy will help to drive Ireland’s economic recovery by enabling strategically important businesses to not only survive the crisis but also to recover and regain longer term momentum.”

NTMA Chief Executive Conor O’Kelly said:

“ISIF successfully demonstrated the importance of its flexibility and its ability to deploy capital during 2020, supporting Irish businesses and the Irish economy at a time of unprecedented challenge.

The new Pandemic Stabilisation and Recovery Fund is a valuable and effective part of the Government’s unprecedented counter-cyclical response to the Covid crisis.

We are pleased with ISIF’s strong investment return of over 6.2% in 2020, producing more than €500m in investment gains which can be used to further invest in Ireland’s recovery and long-term future”.