New €125m fund to invest in SMEs

A new €125 million fund, managed by MML Growth Capital Partners, is to focus on investing in Irish SMEs.

Enterprise Ireland has made a €25million commitment, under the Government's Development Capital Scheme, to the first and final close of the fund, and the balance of the funding is being provided by Allied Irish Banks, the European Investment Fund, GoldPoint Partners, and two US subsidiaries of the Cigna Corporation. The fund will be managed by a team led by Neil McGowan and Rory Quirke.

Rory Brooks, founder partner of MML Capital said: “There are a significant number of opportunities in the indigenous SME sector and we aim to invest between €2 million and €12million in well managed businesses which have clear growth and development prospects. “

The fund is the first launched under 2012's Development Capital Scheme, which aims to increase the availability of risk capital and close the "equity gap" experienced by SMEs seeking risk capital in excess of €2million. A total of €75million in funding has been made available from the Department of Jobs, Enterprise and Innovation through Enterprise Ireland, with the aim of leveraging a minimum total of €150million in additional funding from the private sector.

The fund will look at providing funding for mid-sized, export-oriented businesses – particularly manufacturing and technology companies in traditional sectors including engineering, food, life sciences, services and electronics.