The Ireland Strategic Investment Fund (Isif) has announced plans to invest 30 million in equity into Finance Ireland, the countrys biggest non-bank lender.
This will give the State agency a 32 per cent shareholding in Finance Ireland, which is led by former Permanent TSB chief executive Billy Kane. Isif will also nominate two directors to the companys board.
This is another significant investment for Finance Ireland, which secured 25 million in backing last year from global investment firm Pimco. The latter has a similar holding to Isif.
Isifs investment values Finance Ireland at about 90 million.
Set up in 2002 by Mr Kane, Finance Ireland provides funding to the SME, agri, motor and commercial real estate (CRE) sectors.
The lender already works with Isif in respect of the 100 million MilkFlex Fund, which provides low interest loans to Glanbia dairy farmers.
Finance Ireland said it was on track to provide in excess of 300 million in new lending to Irish customers in 2016.
Operations The company has expanded its operations this year with the addition of 40 staff, bringing its head count to 85 across its four operating divisions.
Commenting on the investment, Mr Kane said: This significant investment by Isif underpins our ambitious growth plans for the coming years. Our mission is to create a major non-bank lender in the Irish financial landscape offering customers a real alternative to the traditional banking sector and we are well on the way to achieving that.
Isif director Eugene O Callaghan said: Isif was attracted by the opportunity to support an established and experienced management team to expand its non-bank platform and in particular grow its SME and agri leasing businesses. This investment complements the products provided by other non-bank platforms in the SME sector that Isif has supported.
Finance Ireland was advised by Goodbody Corporate Finance.