€150 million Senior Credit Fund to be launched for residential property development financing

By Business & Finance
17 July 2018
Pictured (l-r) are the co-founders of Initiative Ireland; Padraig M. Rushe, Chief Credit Officer; Rory McEntee, Chief Operating Officer and Padraig W. Rushe, CEO. (Image: Initiative Ireland).

2,500 new family homes to be funded over the next 5 years

Irish fintech entrepreneur, Padraig W. Rushe, has announced that he is planning to launch a new €150 million Senior Credit Fund within the next 3 months. The Fund will specialise in financing residential property developments, funding the construction of over 2,500 new family homes, in high-demand areas across Ireland, over the next 5 years.

The Fund, which will target an annual return of 7 to 7.5 percent and has already secured backing from Abbey International Finance, which will invest up to €20 million in the Fund. The Davy group will provide regulatory and investment management services to the Fund, which is expected to be a sub-fund of The Davy Platform ICAV umbrella fund structure.

Padraig W. Rushe is the CEO and co-founder of Initiative Ireland, which specialises in syndicated property finance. The company will provide investment advisory services to the new Fund in addition to Loan Management Services. It will also enable the Fund to lend alongside its existing private and corporate clients, via the company’s syndicated finance platform.

Initiative Ireland already has an existing loan pipeline in excess of €150 million, comprised of over 30 housing developments in high-demand areas around Ireland.

Padraig W. Rushe, CEO, Initiative Ireland said, “We will be marketing the opportunity both in Ireland and across Europe, to pension fund managers, large institutional investors and family offices alike. It will also open to qualified investors in Ireland subject to a regulatory minimum investment of €100,000.”

He added, “One of Initiative Ireland’s core objectives is to promote financial inclusion. As such, investors who cannot commit the required amount for the fund will still be able to open Private Lending Accounts or Corporate Lending Accounts with to access the underlying secured asset class, directly lending alongside the fund at smaller amounts.”

Initiative Ireland, a University College Dublin (UCD) spin-in company headquartered at NovaUCD, the Centre for New Ventures and Entrepreneurs, was co-founded in 2015 by Padraig W. Rushe, CEO; Padraig M. Rushe, Chief Credit Officer (CCO) and Rory McEntee, Chief Operating Officer (COO). The company is supported by Enterprise Ireland as a High-Potential Start-Up.