- New fund to provide debt facilities to early stage, high-growth potential Irish SMEs
- ISIF makes initial commitment of €15m with potential for further €10m to be committed
09 May, 2021
The Ireland Strategic Investment Fund (ISIF) and Beach Point Capital have today announced a €15m commitment to a new Beach Point Capital Fund. BPC Ireland Lending II DAC, targeted to reach €150m in size, will provide senior debt facilities to Irish SMEs and help them to capitalise on growth opportunities.
The Fund will focus on entrepreneur led, high-growth potential companies operating across multiple sectors, that are either too early stage or do not have the history of profitability required to secure debt funding from other lenders in the market.
ISIF expects to commit up to €25m to the Fund - an initial commitment of €15m at the recent first close, and a conditional commitment of up to a further €10m at a subsequent closing.
The Fund will follow the same strategy as an existing Beach Point fund which has committed and deployed €104m of capital in 30 high-growth Irish SMEs since September 2018. ISIF committed €30m to that existing fund, which has supported many successful Irish SMEs such as Glantus and Trilogy Technologies.
The Fund backs companies which have a viable growth plan but are unable to raise finance from banks or alternative lenders.
Glantus, for example, is an ERP software provider where loans from the existing Beach Point fund have supported organic growth and a buy-and-build strategy. Glantus has continued to grow revenue, EBITDA and enterprise value supported by the Beach Point Capital funding deployed.
The Fund’s loans are generally in the €2m to €5m space and the greatest demand comes from high-growth and export led businesses operating in sectors such as software/IT, high-end engineering, business services, media and telecoms.
Nick Ashmore, Director, ISIF said:
“ISIF is already a significant supporter of Irish SMEs and this is another example of the Fund deploying capital on a commercial basis in support of businesses that generate important economic activity and employment. The new Fund fills a gap in the market, supporting founders who want to take their businesses to the next level of growth, while avoiding equity dilution.”
The Ireland Strategic Investment Fund (ISIF), controlled and managed by the National Treasury Management Agency (NTMA), is a flexible, long-term, sovereign investment partner with a unique mandate. The ISIF is comprised of the Discretionary Portfolio and the Directed Portfolio. The Discretionary Portfolio (€8.6 billion) has a statutory mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.
About Beach Point Capital
Beach Point Capital Management is a multi-billion dollar investment manager specializing in credit-related investments. The firm employs a flexible, value-oriented and risk-controlled approach, focusing on complex and less followed opportunities.