The Ireland Strategic Investment Fund (ISIF) has conditionally agreed to make a €30m equity investment in Finance Ireland for a 32% shareholding, and will nominate two directors to join the company’s board.
This follows a €25m investment by a global investment firm in Finance Ireland last year. That firm and ISIF will hold similar equity positions in the company once the ISIF investment goes through.
Finance Ireland was established in 2002 by banking entrepreneur Billy Kane (former CEO of Permanent TSB). The company provides funding to the SME, agri, motor and commercial real estate sectors. It already works with ISIF in respect of the MilkFlex Fund, which provides flexible, low interest loans to Glanbia dairy farmers. The firm will provide more than €300m in new lending in 2016.
“This significant investment by ISIF underpins our very ambitious growth plans for the coming years," said Kane. "Our mission is to create a major non-bank lender in the Irish financial landscape, offering customers a real alternative to the traditional banking sector, and we are well on the way to achieving that.”
ISIF director Eugene O’ Callaghan said: “ISIF was attracted by the opportunity to support an established and experienced management team to expand its non-bank platform and, in particular, grow its SME and agri leasing businesses. This investment complements the products provided by other non-bank platforms in the SME sector that ISIF has supported.”
In Association with
Finance Ireland was advised on the transaction by Goodbody Corporate Finance.
Photo: Billy Kane (left) and Fergal McAleavey, Head of Private Equity, ISIF. (Pic: Fennell Photography)
