Almost half the participants in a Belfast conference examining ways to accelerate the development of private equity funding came from organisations in the Republic.
Set up by InterTrade Ireland (ITI), one of six cross-Border bodies formed under the Belfast Agreement, the first such all-island event attracted interest from Dublin entities in the legal, accounting and small-business sector.
"We were very surprised at the extent to which businesses in the South were interested in the event," said Mr Gerry Maloney, investment adviser with ITI's Equity Network programme. "Out of 330 delegates, almost half were from the Republic ... equity financing would be much more developed in Dublin and our feedback suggests these organisations wanted to see what opportunities there were North of the Border."
Mr Maloney said an issue the Equity Network programme had identified was the problem of new firms in Northern Ireland which were knowledge rather than asset-based. This sector was experiencing a difficulty in raising funds as those involved were not always eligible for traditional bank credit. "Once they have exhausted friends and family or the variety of grants that are available, the equity route would be the most appropriate. However, many businesses here would not be familiar with the concept and the conference was designed to inform, educate and advise on all issues relating to equity," he said.
According to InterTrade Ireland research, there has been a dramatic increase in private equity raised and invested in the past decade.
But with the exception of the Dublin market, other areas showed slower signs of growth and a lower level of uptake. It was found that this disparity was due not to a lack of funds but to a shortage of quality deals despite strong demand.
Among the speakers at the conference at Belfast's Ramada Hotel was Mr Scott Malpass, chief investment officer of the Notre Dame University's $3.5 billion (€3.8 million) financial assets. He said the use of private equity would encourage business growth across the island.
Other speakers at the conference were Dr Chris Horn of Iona Technologies; Mr Brody Sweeney of O'Brien's Sandwich Bar; Mr Gilbert Little from AePONA; and Mr David Lowe of Goodbody's Stockbrokers.
