The fund will provide debt capital to UK and Irish companies with profits between € 1 million and € 10 million.
Dublin-based DunPort Capital Management has raised 255 million euros for its new direct lending fund focused on SMEs.
The government’s Irish Strategic Investment Fund (ISIF) has committed € 95 million to the fund, the company said, joined by “a number of other domestic institutional investors”.
The new Oak Corporate Credit Designated Activity Company (DAC) fund succeeds a similar € 283 million fund launched by DunPort in 2017 called Elm Corporate Credit DAC.
The aim of this company is to provide debt capital to companies in the UK and Ireland with profits between € 1 million and € 10 million. The fund will invest in many different sectors.
DunPort describes itself as “the leading provider of non-bank debt capital to businesses and SMEs in the Irish market” and continues to expand its presence in the UK. The company has deployed more than 750 million euros of capital in 38 different companies to date.
Pat Walsh, Executive Director, said: “We continue to experience strong and sustained demand from a wide range of advisors and businesses in Ireland and the UK for flexible debt solutions since the inception of DunPort in 2017.
“After the successful deployment of the capital of our old credit vehicle, Elm Corporate Credit, we are very happy to launch this new fund in order to continue to support SMEs and mid-sized companies in our main markets. “
Finance Minister Paschal Donohoe, TD, added, “By investing in this SME-focused direct lending fund, ISIF can leverage private sector investments to support SMEs and mid-sized businesses.
“As our economy begins to recover from the impact of the pandemic, funds like this will help support established businesses by providing them with the financing they need to grow. This may prove essential for some Irish companies wishing to regain their momentum in the longer term. “
Ross Morrow, Director of DunPort, noted that ISIF is “already a strong supporter of Irish SMEs”, and this fund is “another good example of deploying ISIF capital on a commercial basis, in support of Irish businesses that generate significant economic activity and jobs. ”.
In March, the sovereign development fund invested in another SME-focused finance vehicle managed by MML Growth Capital Partners.