Minister Bruton announces €75million second Development Capital Fund

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, today (Monday) launched a €75 million fund under the Development Capital Scheme, to support established Irish companies targeting significant revenue and jobs growth through export markets.

The development and roll out of the Scheme is a critical element in the Action Plan for Jobs.

 

The BDO Development Capital Fund, which will be managed by Development Capital, a 100% subsidiary of BDO, will invest development and growth capital in established, mid-sized and profitable companies to support and accelerate their export growth plans. It breaks new ground for an enterprise investment fund which in addition to an experienced investment team brings together a blue chip partnership of large Irish corporates and industry experts who, together with Enterprise Ireland, will provide not only funding but also the necessary experience, expertise and international reach to assist secure business growth opportunities. The corporate partners to the fund include Bank of Ireland, CRH plc, Glanbia plc and Glen Dimplex.

In addition to the corporate partners the investee companies will have access to proven industry experts who have created, grown and developed Irish companies into international success stories comprising: Denis Brosnan (former CEO of Kerry Foods), Alan Crosbie (Former Chairman Irish Examiner and family business expert), Dr. Noel Kelly (former Executive Director of Kentz), Dr Jim Mountjoy (founder of Euristix) and Helen Ryan (former CEO Creganna Tactx Medical). The Development Capital Investment Directors are supported by an Investment Committee chaired by Eoin O’Driscoll (Chairman of SWS).

Target companies for investment will be Irish and have significant opportunities for jobs and export growth. Typically companies will be mid-sized, with high-growth potential and annual turnover of €15million to €50million. Based on the current growth opportunities it is likely that the majority of investments will come from the food and agri; life sciences and clean tech; ICT/software and industrial/engineering sectors.

Today’s announcement follows the announcement of the €125million first Development Capital Fund in November 2013. The Development Capital Scheme is part of a suite of non-bank sources of finance rolled out under the Government’s Action Plan for Jobs totalling more than €2billion in funds available for business.

Making the announcement today, Minister Bruton said:

“As we have repeatedly stated, at the heart of our jobs plans is our determination to create a powerful engine of Irish enterprise alongside our strong multinational sector. Around the country we have many excellent mid-sized businesses in sectors like food, manufacturing and engineering – but we want to support more of them to grow bigger, export more and employ more people.

“This new €75million fund from BDO is a major addition to the supports available to this hugely important sector. Not only will it invest sums of between €2million and €10million in 15 of these companies, but it will also provide access to mentoring and other expertise from people who have done it before. This is a very significant new support that will make a real difference to businesses in this category, and will help more companies to grow more, export more, and ultimately create more of the jobs we need”. 

Julie Sinnamon, CEO, Enterprise Ireland, commented: “Funding is a critical component for Irish businesses to win business abroad and to create jobs. I would like congratulate BDO on bringing together such a unique set of investors to form the second fund under the Development Capital Scheme. I know BDO and the advisory board they have formed to support their investee companies will bring significant added value in helping their investee companies achieve their growth strategies”.

Sinead Heaney, Founding Director of the BDO Development Capital Fund, said: “As a funding partner, Development Capital will provide not only funding to investee companies but also the experience, expertise and international reach of all the partners in our Fund, namely experienced investment directors, leading Irish and international Corporates and proven industry experts. We are confident that this unique approach will leverage the strengths and expertise of all our partners delivering real market results in terms of increased export sales and job creation”.

Ms Heaney added: “We recognise the significant growth opportunities available to mid-sized companies and will invest between €2million and €10million in approximately 15 investee companies and our team will actively assist them accelerate and maximise these opportunities. The investment term will be for a period of five years and we aim to have the fund fully invested within three years. Where appropriate, we will also be open to the possibility of leveraging further investment from suitable co-investment partners such as banks and private equity”.