Ulster Bank has joined other institutions in committing capital to Business Growth Fund’s long-term investment vehicle aimed at supporting startup and scale-up businesses.

The bank is joining forces with BGF, the Ireland Strategic Investment Fund (ISIF), AIB and Bank of Ireland to commit additional funds to a possible total of €250m to be invested in Irish SMEs via BGF. 

BGF became the largest growth capital investor in Ireland when it launched in November last year with initial backing from ISIF, AIB, Bank of Ireland, and its existing shareholders. It now has a team of four, led by Leo Casey, formerly of IBI Corporate Finance, and has been meeting with growing businesses around the country.

In Ireland, BGF will make initial investments of between €1m and €10m, with further funding available in subsequent rounds, into early stage and established companies in every sector. The companies it backs typically have revenues between €5m and €100m. In the UK, BGF has invested in more than 220 firmns since 2011, making it the country’s most active equity investor.

Casey said:  “Since our launch in November we have built a highly professional team and have met individual businesses and business advisors from across the country to outline our offering. We have met with a very positive reception and are confident of investment activity in the coming months.

In Association with

“We are in a unique position, as the only equity investor to have the backing of the three major Irish banks. We have an increased pool of money to invest and we will now look to build relationships across a wider network of promising businesses across the country.”

Ulster Bank commercial banking managing director Eddie Cullen added: “RBS has been involved with BGF in the UK since it began and we are delighted to lend our support to BGF in Ireland.

"Ulster Bank offers sectoral expertise and support to businesses across Ireland so it made sense for us, through our relationship with RBS, to be part of the BGF here as we continue to help companies expand and fulfil their ambitions.”

Even before the launch of the Irish investment fund with ISIF, AIB and Bank of Ireland, BGF invested in Renegade Spirits, a new whiskey producer in Waterford, and previously invested in Dublin based Escher Group Holdings, a provider of software solutions to the global post office market.

In Northern Ireland, BGF has invested in Derry waste management company RiverRidge Recycling and family-owned housebuilder Braidwater Homes, also based in Derry.