New BDO Fund Targets Fast Growth SMEs

17 Jul 2020 | 02.08 pm

New BDO Fund Targets Fast Growth SMEs

Development Capital Fund II has €75m to invest

17 Jul 2020 | 02.08 pm

BDO, the accounting and advisory firm, has announced the first close and launch of Development Capital Fund II which will invest in SMEs with significant growth potential.

The investors in the first closing of €75million are the European Investment Fund, Ireland Strategic Investment Fund and Bank of Ireland.

BDO said the fund will make investments between €2m and €12m across a range of sectors throughout the country, typically for a five-year term.

The previous €75m BDO Development Capital Fund launched in 2014 and invested in nine Irish enterprises.

Founding partner Andrew Bourg said the fund favours mid-sized firms with high-growth potential mainly in export markets, and with annual turnover in the range of €5m to €80m.

“The majority of investments are likely to come from ICT/software, industrial/engineering, food and agribusiness; life sciences and clean tech sectors,” Bourg added.

Bourg’s BDO colleague in sourcing investment opportunities is Sinead Heaney.

According to Bourg: “There are many businesses across the country that can unlock and accelerate their growth potential by availing of Development Capital’s investment offering. We have great flexibility in our investment approach and can invest by way of equity, quasi equity or debt. We have a number of pipeline investments identified.”

Michael Costello, BDO managing partner, commented: “There is now a great opportunity for the successor fund to provide much needed capital to high potential, high growth Irish SMEs.”

Andrew McDowell, EIB vice president, stated: “The greater the economic uncertainty, the greater the need to back the entrepreneurs and innovators who are working to rebuild a better, more resilient economy and society. Development Capital Fund II that will ensure that agribusiness, ICT, engineering and industrial companies across the country can innovate and expand even during these challenging times.”

Photo (l-r): Michael Costello, Donal Duffy of Bank of Ireland, Sinead Heaney and Andrew Bourg. (Pix: Shane O’Neill / Coalesce)

 

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