The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, today announced the establishment of a new fund of €125mn managed by MML Growth Capital Partners Ireland which will focus on investing in Irish SMEs.
Enterprise Ireland has made a €25mn commitment, under the Government’s Development Capital Scheme, to the first and final close of the fund. The balance of the funding has been committed by AIB, the European Investment Fund, GoldPoint Partners, and two US subsidiaries of the Cigna Corporation.
The establishment of the Development Capital Scheme is a critical action under the Government’s Action Plan for Jobs and it has the objective of increasing the availability of risk capital and closing the ‘equity gap’ experienced by SMEs seeking risk capital in excess of €2mn. A total of €75mn in funding has been made available from the Department of Jobs, Enterprise and Innovation through Enterprise Ireland, with the aim of leveraging a minimum total of €150mn in additional funding from the private sector.
Today’s announcement represents the first fund launched under the scheme, and investments in Irish SMEs will commence shortly, with the investment team led by Neil McGowan and Rory Quirke, already established in Dublin.
The Development Capital Scheme forms part of the suite of new finance measures put in place through the Action Plan for Jobs, which will make a total of more than €2bn in additional funding available to Irish companies of all sizes over the coming years.
Making the announcement today, Minister Bruton said: “As we have said repeatedly, at the heart of the Government’s Action Plan for Jobs is our determination to support the development of a powerful engine of Irish enterprise. One crucial measure which we put in place through our Plan in order to achieve this is the establishment of the Development Capital Scheme, aimed at providing funding for the mid-sized, export-oriented businesses that are so crucial to our growth – particularly manufacturing and technology companies in traditional sectors including engineering, food, life sciences, services and electronics.
“Ireland has a strong tradition of successful home-grown businesses of this type, and increasing the availability of risk capital for them is critical in ensuring that they can scale sufficiently to compete in international markets, growing exports and jobs. Today’s announcement will mean that the first funds under this scheme will now start flowing into the market which will mean that more companies will be able to access the required development capital, enabling them to expand into export markets and create the jobs we need.”
Julie Sinnamon, CEO, Enterprise Ireland, commented: “Commercial funding is a critical component for Irish businesses to scale and create jobs. I would like to take the opportunity to congratulate the MML team on raising their Irish fund and on establishing a presence in the Irish market. The amount and quality of the International private capital raised for this fund is a testament to the investment opportunity that Irish SMEs represent.”
Rory Brooks, founder partner of MML Capital said: “There are a significant number of opportunities in the indigenous SME sector and we aim to invest between €2 million and €12million in well managed businesses which have clear growth and development prospects. We have put in place an experienced team led by Neil McGowan and Rory Quirke, to source growing companies which, with investment, can realise their potential. Ireland’s economic recovery is now definitively underway and the timing and focus of this Fund could not be better.”