Pensions fund invests €30m to attract foreign capital
THE National Pensions Reserve Fund said it committed €30m to two venture capital funds in support of Innovation Fund Ireland, a government initiative to lure foreign venture capital fund managers to Ireland.
The pensions fund will put €20m into the DFJ Esprit Fund III, which has backed companies such as Lovefilm, Buy.at and Imagine in Ireland.
It will put a further €10m into DFJ Fund X that invests in emerging technologies and has backed companies such as Skype and electric car maker Tesla.
The investments will increase the fund's focus on Ireland and it will work with the IDA to identify opportunities to attract growing companies to Ireland.
"These investments will form part of our private equity and venture capital allocation," said pension fund official Paul Carty.
"They not only represent a strong commercial opportunity for the fund but also form a robust first step for Innovation Fund Ireland in attracting high- quality venture capital managers."
The pensions fund, which was established by former Finance Minister Charlie McCreevy to invest state money for future public sector pension commitments, has since been forced to invest in the bailout of Bank of Ireland and Allied Irish Banks to recapitalise these institutions.
The fund's value was €24.1bn at the end of June 2010.