DunPort’s New Fund Has €255m To Lend

10 Sep 2021 | 10.35 am

DunPort’s New Fund Has €255m To Lend

Backing from ISIF for SME-targeted debt capital fund

10 Sep 2021 | 10.35 am

DunPort Capital Management has raised €255m for its new SME lending fund, Oak Corporate Credit, backed by taxpayers through the Ireland Strategic Investment Fund and domestic institutional investors.

Similar to its predecessor, 2017’s Elm fund of €283m, Oak is embodied as Oak Corporate Credit DAC and will set out to provide “tailored and flexible debt capital solutions to lower mid-market companies with earnings of between €1m and €10m in Ireland and the UK”.

Oak will receive  €95m from ISIF, 

ISIF director Nick Ashmore said: “ISIF is already a significant supporter of Irish SMEs, and this fund is another good example of deploying ISIF capital on a commercial basis, in support of Irish businesses that generate important economic activity and employment.

“With the effects of the pandemic still being felt by many businesses, this fund offers an effective support for established businesses to succeed and scale into the future.” 

DunPort says it has deployed over €750m in debt capital in 64 different transactions with 38 companies.

Executive director Pat Walsh commented: “With a healthy pipeline of transactions currently under review, we look forward to building on the strong relationships with our investor base and wider intermediary network to enhance our position as a leading alternative debt capital provider in both Ireland and the UK.”

His fellow director, Ross Morrow, said that DunPort had  identified opportunities in the lower mid-market to invest in well-established businesses with strong risk-adjusted returns.

“Our targeted niche has a large volume of transactions but a limited supply of alternative debt capital,” he said. “This fund offers borrowers a differentiated capital solution to other potential sources, based on speed of response and access to decision-makers, certainty of execution and flexibility in our investment process, as well as continuity of relationship management throughout the term of the funding.”

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