Non-bank lender Finance Ireland has engaged in a series of shareholder transactions which will see the Ireland Strategic Investment Fund exit its 33% stake, while existing shareholders and M&G take up the slack.

€50m in new equity will be invested as part of the deal, according to the company.

Funds controlled by international investment manager M&G plc and an existing institutional shareholder have each acquired a “substantial” equity stake in the business, Finance Ireland stated. 

In 2021 the company’s new lending figure passed €1 billion for the first time and it’s reporting strong demand for its lending offerings as economic activity continues to recover after the pandemic.

Finance Ireland claims to be Ireland's largest non-bank lender and employs 170 people. It specialises in car finance, commercial property, residential mortgages, SME, agri-food and leasing finance. 

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It is also poised to enter the green lending market with what it says is a “competitively priced home energy loan offering”.

Chief executive Billy Kane (pictured) commented: “ISIF took a key stake in the business in 2016 and they have been a hugely supportive shareholder who played a key role in our growth story." 

M&G chief investment officer Will Nicoll added: “Finance Ireland is well positioned to take advantage of favourable structural changes, as some banks withdraw from core areas of lending.

"In addition to the growth potential of the business, the investment provides us with long-term funding opportunities as we continue to partner with the team to bring innovative financing solutions to Irish businesses and consumers.”

According to Renatus, an A&L Goodbody team led by Stephen Kane and Finbarr Griffin provided legal advice to Finance Ireland, with Deloitte assisting with vendor due diligence.