Sixty new jobs are to be created in Dublin by the fund administration company Butterfield Fulcrum.
Minister for Jobs, Enterprise and Innovation Richard Bruton said the company would increase its workforce in the city centre to 100 people.
The investment is supported by the Government with the aid of IDA Ireland.
Butterfield Fulcrum initially established an operation in Ireland in 2009. At the time it envisaged the creation of 40 jobs, but will now expand its Irish workforce to 100, Mr Bruton said.
The new jobs will be in fund administration, finance and relationship management.
"International financial services is a sector we must target for ambitious growth if we are to create jobs and grow our way out of our difficulties," Mr Bruton said.
"We already have substantial investment and presence here from major global companies, and have built up a skill-base and reputation in this sector, but we must build on these strengths to enable more domestic and international firms establish and grow here."
He said that while the sector globally was going through some difficulties, this could itself create opportunities for Ireland.
Butterfield Fulcrum chief executive Glenn Henderson said the expansion in Ireland was "in no small part due to the availability of a highly talented workforce".
IDA Ireland chief executive Barry O'Leary said Ireland was a key strategic location for the hedge fund industry and further growth in the sector was expected.