ireland strategic investment fund · amcs is a leading international supplier of smart resource erp...
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Ireland Strategic Investment Fund
Sligo Park HotelFriday, 3rd May 2019
ISIF Mandate
Commercial Return
Exceed investment return benchmark
Thinking in decades & making
a difference
Economic ImpactSustainable progress
under the Priority Themes
Market Differentiators• Long term timeframe• Flexible, Innovative & Creative• Trusted Sovereign Partner to businesses and co-investors
ISIF’s Investment Strategy – Focused on Priority Themes
Regional Housing Indigenous Climate Change Brexit
25,000 homes by 2025 Support and scale >100 businesses over 5 years
Investments to deliver substantial carbon reduction
€500m - €750m of commercial investment into the Regions
Commercial investment to enable long term product and market diversification
Balanced Growth
Dublin Regions
Invest on a commercial basis to support economic activity and employment in Ireland
Typical ISIF investments are €10 million +
Regional Development
ISIF’s Regional Strategy
€500m-€750m regional, commercial investment programme
Enabling the Regions
Regional Businesses
Regional Development
ISIF’s strategy will focus on delivering investments which will enable the regions ensuring people live and work in the right places
Enabling via • urban regeneration• housing• commercial real estate• connectivity infrastructure
Aligned with Project Ireland 2040• 3 regions• 4 cities• Key regional centres and key towns
€500m-€750m regional, commercial investment programme
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ISIF’s Regional Strategy
Enabling the Regions
Partnerships will be vital in the regions . ISIF will engage with regional bodies and authorities and have regard to existing regional strategies.
Port of Cork
€18m
▪ ISIF is supporting the Port of Cork’s relocation from constrained Cork City locations to a redeveloped site in Ringaskiddy, and an upgrade of its operating facilities.
▪ Port of Cork is the primary port for the Munster region and particularly critical to the Food & Agriculture and Pharmaceutical clusters located in the Cork region.
▪ The relocation will facilitate the transformational redevelopment of Tivoli and the docklands area.
▪ ISIF provided a €18m junior debt facility alongside a €60m senior debt package from AIB and the European Investment Bank.
Future potential:Substantial urban development opportunity
in the Port’s vacated Cork City sites, on a scale to support Cork’s long-term
development
Shannon Airport Authority
▪ Shannon Airport is based on the west coast of Ireland, providing world class aviation facilities.
▪ Ireland is one of the world’s most open economies, making airport connectivity additionally important.
▪ ISIF committed a €14.3m long term debt facility to support the upgrade of the existing runway, a core element of Shannon Airport’s capital investment programme.
€14m
Future potential:Potential for further long term investment by ISIF to support
SAA’s plans for Shannon Airport and other regional activities
Cherrywood
€52m
▪ Provision of a senior secured debt facility to Hines
Ireland to fund construction of essential enabling
infrastructure at the Cherrywood Strategic
Development Zone in South Dublin.
▪ Direct senior loan commitment from ISIF to Hines
Ireland. The ISIF facility directly facilitates
supporting infrastructure such as roads, waste,
utilities, which will unlock the planned development
of a major strategic site.
▪ Hines Ireland, as the largest landowner at
Cherrywood, will use the ISIF facility to lead
infrastructural development in the SDZ, where it
plans to develop approx. 4,000 units.
Future potential:Joint venture with Cork County
Council (“HISCO”) to provide Design-Build-Finance service to landowners / developers for the
provision of onsite enabling infrastructure on larger scale
housing sites
Kilkenny – Abbey Quarter Development
▪ In 2015 ISIF entered into a joint venture partnership with Kilkenny County Council to develop the former Smithwicks Brewery site in Kilkenny city.
▪ This opportunity represents a major economic development initiative for Kilkenny providing development critical for the development of the city.
▪ It will attract FDI, commercial investment and jobs to the area.
▪ The involvement of ISIF in this investment as a patient source of long-term capital is crucial to the project going ahead.
▪ This project will provide a basis for future urban, regional redevelopment projects.
€1.6m
Future potential:Follow on capital from ISIF to support multiple
stages of site development
Fergal McAleavey
Indigenous BusinessesSenior Investment Director
Indigenous Businesses
ISIF will increase direct investment in indigenous businesses (debt & equity) and will have a particular direct equity focus to counter lack of scaling of indigenous businesses
ISIF will utilise platforms (equity & alternative debt providers) to access smaller scale investments.
ISIF will invest €1bn, both directly and via funds, in scaling up to 100 indigenous businesses over 5 years
Support scaling of 100 indigenous businesses
ISIF’s venture and early stage investments will be aimed at developing a candidate pool of companies into which scaling capital can be invested.
ISIF will invest directly for larger amounts (typically medium scale growth companies)
use platforms to maximise impact for SMEs based in Ireland (typically smaller scale)
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ISIF will invest across a broad range of sectors – Food & Agriculture, Technology and Health in particular.
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ISIF’s Indigenous Businesses StrategyCompeting internationally
ISIF Making a differenceDirect Investments
▪ Equity investment to back the acquisition of the Green Isle and Donegal Catch food manufacturing businesses by a group led by the former Chief Executive of Largo Foods (Tayto)
▪ The acquisition supports 106 jobs at a manufacturing plant in Sligo and offices in Kildare.
▪ ISIF investment will facilitate plans to grow revenues and diversify the business base, targeting both the domestic and export markets, while building on existing strong market positions held by both Green Isle and Donegal Catch in Ireland.
▪ Long term ownership philosophy with the potential for follow-in investment to fund expansionary capital investment.
€7m
March 2019
Commercial Return Economic Impact
▪ Compelling growth strategy centred on therevitalisation of two of Ireland’s best-known foodbrands and investment in new product developmentand operational enhancements.
▪ Opportunity to grow a leading indigenous Irish food manufacturing business.
▪ Strong co-investment partners with exceptional track records of value creation in the Irish food industry, including deep networks in the retail sector
▪ Aligned with Bord Iascaigh Mhara’s broader strategy to grow the Irish seafood industry.
▪ Investing in a food category benefiting from favourable macro trends.
▪ Reflects ISIF’s commitment to investing in regional development and supporting Irish businesses
Green Isle Foods
AMCS Group
▪ ISIF first co-invested alongside Insight Venture Partners (NY) in a €45m Series
C round, July 2015 and in 2018 ISIF made a follow on commitment to the company as part
of 100m round
▪ AMCS is a leading international supplier of smart resource ERP software and vehicle
technology solutions for the waste, recycling and resource industry
▪ AMCS software manages in excess of €4 billion revenue, 14,000 vehicles and 3,000+ sites
on behalf of a blue chip customer base in Europe, North America and Australasia.
Commercial Return Economic Impact
▪ AMCS experiencing an exceptional growth trajectory as industry increases operational sophistication
▪ Growth in exports, employment and R&D investment in software from a regional Irish HQ
▪ Strong co-investment partner with specific software expertise
▪ Funding will be used to accelerate expansion of the business internationally
▪ Strong potential for company to leverage resource and logistics software into complementary industry verticals
▪ Continue to cultivate world class technology development and commercialisation in high economic impact Irish software sector
€46m
▪ BGF is a UK based source of long-term patient capital for small and medium-sized companies in Ireland looking to scale up their operations
▪ BGF typically invest between €2m-€10m in return for a minority stake in Irish SME’s
▪ ISIF’s €125m commitment is in line with ISIF strategy on scaling up indigenous companies
▪ BGF is also backed by AIB, BoI, Ulster Bank and BGF shareholders
€125mCommercial Return Economic Impact
▪ Strong expertise in UK management team with strong alignment of interest
▪ SME’s are labour intensive and an increase in jobs is highly likely
▪ Structurally attractive sector suited to patient investment approach in line with ISIF strategy
▪ ISIF facility unlocks growth potential of SME’s who might otherwise fail to secure traditional funding.
▪ Strong co-investment partners ▪ Supports SBCI, Enterprise Ireland and broader government strategy in this area
BGF
Our Funds & Platforms
Outline criteria
• Capital used to grow/scale business – particularly export focussed
• Seeking commercial and economic returns – sector agnostic
• Long term patient capital – no time constraint or forced exit
• Always minority investor – investment usually equity
• Seek appropriate Board and governance structures
• Typical minimum investment of €10m (preference if investing alongside other investments)
• For investment opportunities less than €10m – investment via ISIF back funds
Seeking to provide capital to the next generation of large indigenous businesses to allow for execution of expansion plans
www.isif.ie
@ntma_ie
Contacts
Colin O’Reilly
Senior Investment Manager
ISIF
T +353 1 238 4066
Jefferson Vieira
Senior Investment Analyst
ISIF
T +353 1 238 4308
Meabh Mc Donnell
Business Development Manager
ISIF
T +353 1 238 4951
Donal MurphyEnabling Investments
Senior Investment Director
T +353 1 238 4934
Fergal McAleaveyIndigenous Businesses
Senior Investment Director
T +353 1 238 4432
Joe Crockett
Consultant
ISIF
Martin Whelan
Head of Public Affairs & Communications
NTMA