Minister Bruton announces €125million first Development Capital Fund

MML Growth Capital Ireland Fund to focus on Irish SMEs

The Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, today (Monday 4 November 2013) announced the establishment of a new fund of €125million managed by MML Growth Capital Partners Ireland which will 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. The balance of the funding has been committed by Allied Irish Banks, the European Investment Fund, GoldPoint Partners, and two United States subsidiaries of the Cigna Corporation.

Pictured at the launch were Rory Brooks, Founder Partner, MML Capital, Minister for Jobs, Enterprise and Innovation, Richard Bruton TD and Julie Sinnamon, CEO, Enterprise Ireland.
Pictured at the launch were Rory Brooks, Founder Partner, MML Capital, Minister for Jobs, Enterprise and Innovation, Richard Bruton TD and Julie Sinnamon, CEO, Enterprise Ireland.

The establishment of the Development Capital Scheme is a critical action under the Government’s Action Plan for Jobs and it has the objective of increasing the availability of risk capital and closing 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. Today’s announcement represents the first fund launched under the scheme, and investments in Irish SMEs will commence shortly, with the investment team led by Neil McGowan and Rory Quirke, already established in Dublin.

The Development Capital Scheme forms part of the suite of new finance measures put in place through the Action Plan for Jobs, which will make a total of more than €2billion in additional funding available to Irish companies of all sizes over the coming years.

Making the announcement today, Minister Bruton said:

“As we have said repeatedly, at the heart of the Government’s Action Plan for Jobs is our determination to support the development of a powerful engine of Irish enterprise. One crucial measure which we put in place through our Plan in order to achieve this is the establishment of the Development Capital Scheme, aimed at providing funding for the mid-sized, export-oriented businesses that are so crucial to our growth – particularly manufacturing and technology companies in traditional sectors including engineering, food, life sciences, services and electronics.

“Ireland has a strong tradition of successful home-grown businesses of this type, and increasing the availability of risk capital for them is critical in ensuring that they can scale sufficiently to compete in international markets, growing exports and jobs. Today’s announcement will mean that the first funds under this scheme will now start flowing into the market which will mean that more companies will be able to access the required development capital, enabling them to expand into export markets and create the jobs we need”.

Julie Sinnamon, CEO, Enterprise Ireland, commented: “Commercial funding is a critical component for Irish businesses to scale and create jobs. I would like to take the opportunity to congratulate the MML team on raising their Irish fund and on establishing a presence in the Irish market.  The amount and quality of the International private capital raised for this fund is a testament to the investment opportunity that Irish SMEs represent.”

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. We have put in place an experienced team led by Neil McGowan and Rory Quirke, to source growing companies which, with investment, can realise their potential. Ireland’s economic recovery is now definitively underway and the timing and focus of this Fund could not be better.”  

AIB Head of Business Banking, Ken Burke said: "AIB is pleased to make available €20 million to MML Growth Capital Partners Ireland. AIB is committed to supporting SMEs and also larger Irish businesses throughout their lifecycle. Access to capital from all sources is very important and AIB is the largest provider of seed capital funding in Ireland, and an active provider of venture and development capital funding. MML have an excellent track record and we look forward to working with them over the coming years."

ENDS

For further information, please contact:

For MML Capital:

Billy Murphy, Drury 012605000, 0872313085, Billy.Murphy@Drury.ie

Neil McGowan/Rory Quirke, MML 01 4283570, nmcgowan@mmlcapital.ie, rquirke@mmlcapital.ie

The Press Office at Enterprise Ireland


Notes for Editors

Development Capital Fund:

The Development Capital Scheme was launched in 2012 by Minister Bruton as part of the Action Plan for Jobs in order to increase the availability of growth and expansion risk capital in the form of equity or quasi equity for established Irish manufacturing and high growth companies. The main objectives of the Scheme are to:

  • Increase the availability of risk capital to established Irish companies.
  • To close the equity gap experienced by Irish SMEs.
  • To encourage and leverage private sector investment in the Irish economy

Through an open and competitive process,  Enterprise Ireland has made commitments of €75m available to three funds. Under the Scheme, commitments were made to funds that will provide equity, quasi equity or debt of between €2m and €10m to established investee companies. Further announcements of funds established under the Scheme will be made in the near term.

MML Capital:

Established in 1988, MML Capital Partners is 25 years old this week. It has offices in London, Paris, Stamford Connecticut and now Dublin. MML Capital also has a sister operation in Central and Eastern Europe. MML creates bespoke deals for each unique opportunity, recognising that while the challenges facing businesses are sometimes similar, the specific details are never the same. Over the past 25 years, MML has established funds in Western Europe, the United States and in Central and Eastern Europe.