DunPort Capital Management has completed the so-called first close of its latest fund aimed at small and medium-sized companies in Ireland and elsewhere.
The Dublin-based firm’s €200 million direct lending fund known as Willow Corporate Credit is backed by a €100 million commitment from the Ireland Strategic Investment Fund (ISIF), along with other institutional investors including the European Investment Fund and the Construction Workers’ Pension Scheme, DunPort said in a statement.
A first close generally means the fund is now large enough to start putting capital into companies. Willow remains open to investors, DunPort said, and it is seeking a final close of about €500 million.
DunPort expects to use the fund to target companies that are well established and have earnings of between €1 million and €10 million, it said. While the company continues to focus on the UK and Ireland, it plans to expand into Belgium, the Netherlands and Luxembourg (Benelux).
Don’t leave PRSI benefits on the table - they can save you thousands of euro
Irish businesses look toward 2025 investment, as inflation ticks up
For Avant Money CEO Niall Corbett it’s all about balance - ‘We have to lend money to make money.’
The Irish Times Business Person of the Month: Marc Murphy, Fenergo
Companies often use such funding to finance the likes of buyouts, recapitalisations and acquisitions, among other uses, DunPort added.
“Demand for flexible debt solutions from SMEs and midsized businesses across Ireland, the UK and Benelux remains robust, highlighting the critical role of alternative lenders in these markets,” said Pat Walsh, executive director at DunPort. “We have seen increasing demand from investors seeking greater access to private markets as they continue to seek to diversify their portfolios.”
Willow continues a line of such funds from DunPort focused on small business. It launched the €283 million Elm fund in 2018, followed by the €335 million Oak fund three years later. It also has a fund focused on UK businesses along with a €50 million fund set up with ISIF during the pandemic in 2021.
“Our strategy continues to centre on providing targeted financing solutions to the lower midmarket in Ireland, the UK and Benelux,” Ross Morrow, executive director, said. “These regions present substantial opportunities where businesses are often underserved by traditional lenders.”
Up to now the firm has invested more than €1.2 billion from its funds in 95 deals involving 66 companies, according to its website.
“This new DunPort fund is a good example of how ISIF capital is being deployed to support growing Irish businesses,” ISIF director Nick Ashmore said. “Our commitment to the Willow fund is well positioned to support innovative businesses as they scale and develop.”
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
