Investment Immigration to Ireland: Learn about Ireland's economic policies: Soon, Ireland's sovereign development fund may provide funding to small and medium-sized enterprises (SMEs) through channels such as P2P online lending, expanding the avenues for SMEs to obtain credit support.
The Ireland Strategic Investment Fund (ISIF) manages 7.2 billion euros in assets. It recently announced that it will establish a "Platform Investment Fund (PIF)." This intermediary fund will invest in loan assets on various Next Generation Lending Platforms (NGPs). These so-called next-generation lending platforms include all new platforms built using the internet and "other new technologies" (including various types of P2P and P2B platforms).
A proposal published by the National Treasury Management Agency (NTMA) of Ireland stated: "The fund will support both short-term working capital (such as individual or bulk invoices and supply chain finance) and high-quality long-term loans."
A few months before this proposal was put forward, Donal Murphy, Head of Infrastructure and Credit Finance at ISIF, had just revealed to the media that, given the recovery of the banking sector, he was re-evaluating how to support SME credit.
"We want to see if there are potential mezzanine debt or equity investment opportunities (in the traditional financial system). If they are short of capital, we will invest; but if we do not find investment opportunities, we will look for other types of transactions and channels."
P2P lending platforms may be the "other channels" he alluded to.
The NTMA stated that it is currently seeking a manager for the Platform Investment Fund to oversee fund operations and determine appropriate rates of return. Additionally, although not explicitly restricted, the loans issued are more likely to be used by Irish companies, as the mission of the ISIF is not only to seek financial investment returns but also to promote domestic economic development in Ireland.
Once the Platform Investment Fund is established, it will function through "counterparties." These "counterparties" can obtain funding support from the Platform Investment Fund through appropriate agreements or contracts.
The NTMA also emphasized that any interested transaction participants must meet the following conditions: the ability to manage a large number of individual loans (each loan amount under 500,000 euros); the ability to conduct due diligence before investment; and the ability to manage and recover loans.
A few days before this proposal, the ISIF made its first investment, acquiring a 15% stake in the life sciences company Malin. Malin, which listed on the Irish Stock Exchange last month, will invest 150 million euros in the life sciences sector and create 200 jobs over the next five years.
The Ireland Strategic Investment Fund (ISIF) was established on December 22, 2014, with the aim of supporting economic activity and promoting employment within Ireland. The Irish sovereign wealth fund, the "National Pensions Reserve Fund," injected 7.2 billion euros into it.