Ireland Strategic Investment Fund (ISIF) has sold its 33% stake in Finance Ireland in a series of transactions that saw UK investment manager M&G added to the register of shareholders and participating in a €50m capital raise.
Finance Ireland’s other existing major shareholder, US investment giant Pimco, also joined the fundraiser, the Irish company said in a statement on Wednesday.
In 2021, the company’s new lending volume surpassed EUR 1 billion for the first time, and the company reports strong demand for its lending offerings as economic activity continues to recover from the pandemic.
Finance Ireland which has been forced to announce plans for an initial public offering (IPO) valued at over £100m Future growth and expansion including continued growth of its auto finance business.
The company recently moved its auto financing business onto its own balance sheet to maximize its growth potential. Funds from the UK merchant banking group Close Brothers were previously used for this deal.
Finance Ireland, founded by Billy Kane, now employs over 170 people and is Ireland’s largest non-bank lender which has grown into a multi-asset lender specializing in auto finance, commercial real estate, home mortgages, SMEs, farm loans and lease finance. It is also ready to enter the green lending market and support consumers with a low-cost home energy loan offer, it said.
Finance Ireland had a partnership with M&G before the UK group decided to invest. M&G finances the company’s mortgage loans. Finance Ireland said ISIF’s exit is in line with the government investment body’s business strategy after supporting the company’s growth over the past six years.
“This transaction is a huge vote of confidence not only for Finance Ireland and the management team but also for the Irish economy as it provides us with long-term capital to grow and expand our client offering and execute our long-term growth strategy,” said Mr Kane .