Business processing group Capita Asset Services expects to employ 200 additional staff in Ireland over the next two years to meet increased levels of business.
The company announced today that it has secured a contract to provide services to Activate Capital, a joint venture set up in July between the Ireland Strategic Investment Fund and US group KKR Credit that plans to provide €500 million in loans for residential house building.
The aim of the joint venture is to stimulate building by providing up to 90 percent debt financing for housing projects.
The Government has estimated that this could create up to 1,900 full-time jobs in the building-related activities and lead to the construction of 11,000 new homes.
"Based on business forecasts we would anticipate increasing headcount by up to 200 in the next two years," Robbie Hughes, Capita's country manager for Ireland, said.
“After a number of very challenging years for the SME and housing sectors there are real signs that new forms of lending from Irish and international pension funds as well as private equity, are emerging due to restored confidence in a resurgent Irish market.
“Non-bank direct lending is expected to develop increased market share over 2016 and beyond creating interesting opportunities across the business sector.”
At peak, Capita expects to have between 12 and 15 staff working on the Activate contract, which will involve managing middle and back office functions, monitoring lending and development projects, cash flow, and asset management. Activate could approve its first loans by the end of this year.
Capita employs 1,600 people in Ireland in corporate services, loan administration, asset management, loan workout and recovery, and support services for the banking, fund administration, aviation and life and pensions industries.
New contract wins have helped Capita Asset Services Ireland increase its assets under management by more than €8 billion this year. The total funds being managed by its teams is now more than €137 billion.
Commenting on its appointment with Activate Capital, Mr Hughes said:
“This is a show of confidence in Capita’s ability to provide ‘end to end’ support services for this fund and a number of others.”
He said Capita had built the infrastructure necessary for clients to originate new mortgage lending in Ireland as the economy continues to recover.
Capita is the highest rated servicer of loans in Europe, by both Fitch and Standard & Poor's.
Mr Hughes comments were made on the fringe of Capita's autumn lunch, which was attended by the Minister for Finance Michael Noonan and about 50 representatives from the Irish business and banking community.