AIB has appointed SME and sustainable infrastructure investment manager Foresight Group to manage its new SME equity fund, with plans to raise €75m to "stimulate job creation and ensure a greener future across the island of Ireland."
The bank will provide a cornerstone investment of €30m to the fund, which will typically make equity investments of €2-5m to businesses helping to accelerate the transition towards a low-carbon economy, although it will have the ability to make smaller or larger investments.
"As Ireland’s largest financial services provider with 2.8m customers, AIB is committed to supporting the transition to a low-carbon economy, reducing our own carbon footprint and helping our customers to do the same," said Cathy Bryce, managing director of AIB Capital Markets.
“Our ambition is that green and transition lending will account for 70% of new lending by 2030. But as well as taking action through lending, AIB is ensuring equity has a key role to play in backing the green businesses of the future.
"That is why we are delighted to be partnering with Foresight, whose strong environmental, social and governance focus will be invaluable to small companies with big ambitions to play a role in Ireland’s transition to a low carbon economy."
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James Livingston, partner at Foresight added: "We are delighted to be working with AIB in a partnership that will see us open an office in Dublin and support Irish SMEs across the whole decarbonisation agenda.
“We will seek to invest across the spectrum of the low carbon agenda, from companies enabling the circular economy, to advanced technology which supports smart cities, from enlightened consumer businesses taking market share from more environmentally damaging competitors, to the services companies that enable the transition to happen. We look forward to announcing further progress on the partnership shortly.”
The AIB Foresight SME Impact Fund will soon reach first close, pending regulatory approval, and it will be open to firms in both the Republic and Northern Ireland.
Foresight's private equity funds created more than 500 jobs in the UK last year, and the group is one of the most active SME investors in Europe, managing more than 300 sustainable assets and generating power from more than 3GW of green energy assets, including solar, offshore wind, bioenergy, waste and renewable energy enabling projects.
Foresight is listed on the London Stock Exchange and operates in six countries in Europe and Australia with assets under management of £8.7bn as of the end of March.
Photo: Cathy Bryce, AIB managing director of Capital Markets and James Livingston, Foresight partner.
