Ireland Strategic Investment Fund 1 st June 2016 The Clarion Hotel, Cork City
Eugene O’Callaghan Director, Ireland Strategic Investment Fund T +353 1 238 4066 E eocallaghan@ntma.ie
Fund Size and Structure Total Fund Size €21.4 bn Discretionary Available for investment in Directed Portfolio Portfolio accordance with ISIF’s Public policy investments in €13.5 bn objectives AIB and Bank of Ireland €7.9 bn €2.3 billion committed 3
A Unique and Challenging Mandate Invest on a commercial basis to support economic activity and employment in Ireland 4
A Unique and Challenging Mandate Double Bottom Line Investment Returns Investment Economic Returns Impact Economic Impact 5
High Economic Impact Investments Economic Impact Framework - Key Concepts Additionality Benefits would not have been achieved without the ISIF investment Deadweight Benefits would have been achieved without ISIF investment Displacement Benefits achieved at expense of other domestic players 6
Commercial Investment Objectives Return and Debt and/ Tenor Flexibility Innovative Commerciality or equity Risk adjusted No set regulatory or Seek new ways to expected return Long term horizons return on capital play a role in the requirements market Participate in all levels of capital structure - Third Party investors validate commerciality Equity, Mezzanine, Work with public and Senior Debt, etc No restrictions Ownership / Control private sector parties on tenor not key driver to develop financing No “Soft Money” solutions 7
Where do we think we can Invest…with Impact? Real Estate Infrastructure Energy SME Food Agriculture based Direct Private Venutre Other “Big Idea” Water Equity 8
€5.8bn Capital Committed to Ireland €2.3bn ISIF Committed Capital at 30 April 2016 €450 m €304 m €79 m € ISIF Crowding in Capital Water Infrastructure Energy ISIF €2.3bn has unlocked third party capital, total commitment of €5.8bn to Ireland €355 m €75 m €475 m SME Food & Agri Real Estate €56 m €434 m €92 m Direct Equity Venture Other 9
ISIF Transaction Update €155m €759m committed in 2016 committed in 2015 1 with continued strong pipeline €92m €50m €15m €54m €35m €25m €10m *Conditional on global fundraising completion Venture Capital Fund €45m €325m €50m €11m €20m €15m Funding Round €45m *Not announced. $30m €150m Funding Round 1 The purpose of this slide is to provide an update on the ISIF’s commitments. Please note that due to the time lag of commitments and drawdowns, the majority of the investments presented here 1 0 do not contribute to the FY 2015 economic impact. As capital is invested the economic impact will be captured in future reports.
Snapshot of Underlying Investees FY 2015 ISIF supporting 108 Irish-based companies / projects through commercial investments 1 1
ISIF sits within an extensive and powerful investment network Government Co-Investors Debt Finance Dept. of Finance | Dept. of Taoiseach Irish & International Asset Managers Irish Banks Dept. of Jobs | Enterprise & Innovation Sovereign Wealth Funds International Banks Dept. of Public | Expenditure and Reform Intl. Pension Funds Non-bank credit funds Dept. of Health | Dept. of Agriculture Irish Pension Funds EIB Other Government Departments | Embassies | Local Authorities State Agencies / Bodies Equity Finance ISIF Enterprise Ireland | IDA Irish VC Central Bank of Ireland International VC Universities Irish & International PE funds Science Foundation Ireland | Teagasc Multi-nationals Key NTMA Entities Project Entrepreneurs /Sponsors Advisors NAMA Start Ups | Growth Businesses | SME Corporate Finance Large & Mid-Cap | Housing Accountancy SBCI Legal NewERA Multi-nationals | Infrastructure Commercial Semi-States | IBEC Consultancy NDFA 1 2
Strong Future Pipeline of Investment Opportunities 350 + 53 €10m - €100 m In excess of 350 engagements The active pipeline consists Typically opportunities range to date, with over 80 current of 53 opportunities across in size between €10 million engagements a diverse range of sectors and €100 million 1 3
A Unique and Challenging Mandate Flexible, long term, sovereign public investment partner 1 4
Flexible, Long-Term, Sovereign Investment Partner Investment proposals welcome No specific criteria, just commercial risk adjusted return and economic impact Early stage proposals, concepts and even ideas welcome - as we can be constructive in shaping the transaction Strong, supportive partner for corporate Ireland, public entities and international investment funds 1 5
ISIF and Cork • Crucial for ISIF and stakeholders that our investments have impact on a national scale • Pipeline is well spread geographically and a number of potential transactions are in the Cork region • ISIF continues to have considerable engagement with stakeholders and project promoters in the Cork area • To maximise the impact of ISIF investments in the region, ISIF encourages : A co-ordinated approach from stakeholders and project promoters Strategic alignment of regional initiatives and development plans Awareness of the “double bottom line” ISIF mandate 1 6
ISIF Video
Donal Murphy Head of Infrastructure & Credit Investments T +353 1 238 4934 E donal.murphy@ntma.ie
Infrastructure & Energy Energy Infrastructure Enabling Infrastructure Social Infrastructure Connectivity - Virtual Connectivity Physical Sector • Wind, Biomass, • Enabling Energy • • Fibre Optic Cable • Ports Student Waste to Energy Infrastructure Projects • Airports Accommodation Sample • Enabling • • Emerging • Elderly Care Energy for Data Technologies Residential • Primary Care Centres Projects Development Centres • Broadband • Heat / Energy Efficiency • Flexible • Long Term, • Flexible risk/return • Delivering the • Flexibility of funding What risk/return patient capital metrics solutions “marginal MW” metrics • Scale Up to match • Innovative ISIF • Long term horizon • Flexibility • Long term structures demographics brings… investment • Certainty of finance • Accelerate horizon investment availability 1 9
DCU ISIF Investment Details • €54m commitment made in December 2015 • Long-term funding - maturity profile not currently available in the Irish banking market • ISIF funding unlocks parallel funding of €76m from the EIB • Flexible approach sees ISIF fund commercial activities and EIB finance academic facilities DCU • €230m Campus Development Plan being implemented over the next 2-3 years • Merging DCU, St Patricks, Mater Dei and Church Of Ireland College of Education • ISIF Commitment will assist the university deliver over 3,200 student accommodation units 2 0
ISIF - Infrastructure Currently active in the Cork region… initial engagement with a range of bodies seeking out opportunities consistent with the ISIF mandate … – Port of Cork – UCC – Cork City Council – Cork County Council – Enabling Infrastructure to unlock residential development … and other one-off projects 2 1
Fergal McAleavey Head of Private Equity T +353 1 238 4432 E fergal.mcaleavey@ntma.ie
Sectors of Interest – Private Equity Venture Capital Real Estate SME Sector • Support leading edge high potential • Boom or bust cyclicality • SME central to economic growth Irish companies in strategic sectors • Deficit of development funding • Historical overreliance on bank debt • Assist in creating a vibrant and solutions currently • DEBT - Focus on alternative credit diverse funding landscape via local products – unitranche or niche • Investments in residential, and international VC’s commercial and urban regeneration • EQUITY – investment in funds or • Investments in 22 funds in software, directly in businesses - via funds and directly hardware, medical device and • ISIF commitments of €422m to date - equity, mezz and unitranche pharma • ISIF commitments of €475m to date • ISIF commitments of €423m to date 2 3
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