M&G acquires ‘significant’ stake in Finance Ireland as ISIF exits business


Ireland’s largest non-bank lender Finance Ireland has announced a series of shareholder transactions including a new €50 million capital raise.

As part of this, funds controlled and managed by global investment manager M&G plc have now acquired a sizeable equity stake in the company.

The previous shareholder Pimco also increased its stake in the company.

The transaction will also result in Ireland Strategic Investment Fund (ISIF) giving up its 33 per cent stake in Finance Ireland, a move which the company says is in line with ISIF’s own investment strategy after scaling the business over the past 6 years .

ISIF is believed to have made a little over 50 per cent profit on the Finance Ireland investment after an initial investment of around €45m.

Finance Ireland founder Billy Kane described the transaction as “a huge vote of confidence”.

“M&G knows our business well as lenders to our residential mortgage book and we are pleased that they have taken this step to take a significant equity position in our business at this time,” he said.

“Timing is also important given the exit of Ulster Bank and KBC from the market as customers look for a new provider for their mortgage and corporate finance.”

Will Nicol, M&G’s chief investment officer for private and alternative assets, said the investment would provide M&G with an opportunity to “benefit from favorable structural changes as some banks exit core lending areas”.

The transaction also raised Finance Ireland €50 million in equity to support future growth and expansion, including the planned growth of its auto finance business, which has recently been placed on Finance Ireland’s own balance sheet.

In 2021, Finance Ireland’s new lending exceeded €1 billion for the first time, with strong demand continuing this year. The lender now employs over 170 people. M&G acquires ‘significant’ stake in Finance Ireland as ISIF exits business

Fry Electronics Team

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