ireland strategic investment fund - ul.ie strategic... · the isif mandate: co-investment...
TRANSCRIPT
Key Components of Investment Mandate
1. Double Bottom Line – Investment Returns and Economic Impact
2. Co-Investment Opportunities in a recovering economy
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National Treasury Management Agency (NTMA)
• NTMA is a commercial organisation providing a range of specialist financial and risk management services to the Government of Ireland
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NTMA
Funding & Debt
Management (FDM)
NewERA
Strategic Banking
Corporation Ireland (SBCI)
Ireland Strategic
Investment Fund (ISIF) /
NPRF
National Asset
Management Agency (NAMA)
National Development
Finance Agency (NDFA)
State Claims Agency (SCA)
• Funding & Debt Management: Manages State borrowings in sovereign bond markets
• NewERA: Co-ordinates State’s ownership of certain commercial semi-state firms
• Strategic Banking Corporation of Ireland (SBCI): Sources low cost long term finance from multilateral finance providers and State resources and channels this to Irish SME borrowers
• Ireland Strategic Investment Fund (ex NPRF): State pension fund, transitioning to focus on strategic investment
• NAMA: Manages large real estate assets and development loans acquired from Irish banks
• NDFA: Manages public private partnership projects, provision of financial advice on large capital expenditure by the State
• SCA: Manages the State’s personal injury and property damage claims
2009
Nov
2010
Sept
2011
June
2013
2014
• Initial recapitalisation in €10.7bn from NPRF
• Banking system in deep trouble
• Flight of deposits
• EU/IMF €85bn Programme of Financial Support €67.5bn from EU, ECB and IMF;
• €17.5bn from Ireland, of which €10bn from NPRF
• €50bn for Sovereign, €35bn for Banks
Government announcement that remainder of NPRF assets to be invested “Strategically”
Announced intention to form the Ireland Strategic Investment Fund (ISIF)
New Fund New Mandate
€7BN ISIF formed by the passing of the NTMA Amendment Act, 2014
NPRF: Journey Post Crisis
The ISIF Mandate: Double Bottom Line
• Sovereign Development Fund: Investing on a commercial basis
To support economic activity, and
Employment in Ireland
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20% Lower Impact
80% High Impact
Deadweight
•Benefits would have been achieved without ISIF investment
Displacement
•Benefits achieved at expense of other domestic players
Additionality
•Benefits would not have been achieved without the ISIF investment
Fund Allocation Economic Impact Framework - Key Concepts
The ISIF Mandate: Co-Investment Opportunities
• Co-Investment is a key element of ISIF strategy
• ISIF can be attractive partner for international investors Commercial investor
Flexible investment time horizon (can be very long or short term)
Flexibility to invest across the capital structure
Sovereign fund
Independent governance
Cornerstone investor, lead role in structuring / implementation / monitoring
Link to key players in Irish business and financial system
Govt Depts, IDA, Enterprise Ireland, SBCI, NewEra & commercial semi-states, NDFA and PPP projects, NAMA, pillar banks, private equity / venture capital community etc
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Illustrative Investments / Sectors of Interest
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Infrastructure
• Irish Water:
• Multi billion Euro capex in regulated utility
• Transportation
• Ferry ports
• Airports
• Broadband
• Data centres
Food / AgriSector
• Farming:
• Production expansion post dairy quota system reform
• Food processing:
• Improve branding and position in value chain
• Fisheries:
• Aquamarine
• Further processing
• Forestry:
• Improve exploitation of Irish forests very strong growing profile
Energy Sector
• Sustainable cost efficient energy
• Car fuel economy and emission improvement technologies
• Wind Power
Education
• Improvement of course content and delivery from primary through to third level
• Improved efficiency of education provision
Illustrative Investments / Sectors of Interest
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Real Estate
• Housing
• Urban Renewal
• Tourism related assets
• Advance factories and facilities for industry
Technology / Venture
• Venture Funds:
• Enhance growth and development of strong tech sector in Ireland
SME Sector
• Equity:
• China Ireland Technology Fund
• Mezzanine
• Credit
• Term Loans
• Working Capital
Tourism – ISIF Role / Interest in the Sector
• Tourism covers a broad range of sectors: Infrastructure
Airports
Roads
Ferries
Real estate
Hotels
Holiday homes
Entertainment attractions
Theme parks
Sporting facilities
Enabling technologies
Reservation and holiday / travel booking systems
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Tourism – ISIF Role / Interest in the Sector
• ISIF is open to considering tourism sector related investments
• Key issues for consideration: Projects MUST be COMMERCIAL (no soft money)
Tourism projects tend to be relatively small with more localised benefits
Avoid displacement
Avoid deadweight
• Currently we are looking at a number of opportunities in the sector
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Key Components of Investment Mandate
1. Double Bottom Line – Investment Returns and Economic Impact
2. Co-Investment Opportunities in a recovering economy
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For further information, please contact : Michael Lee [email protected] + 353 1 238 4937