ENTERPRISE Minister Richard Bruton has announced the establishment of a new fund of €125m managed by MML Growth Capital Partners Ireland which will focus on investing in Irish SMEs.

Enterprise Ireland has made a €25m commitment, under the Government's Development Capital Scheme, to the first and final close of the fund.

The balance of the funding has been committed by Allied Irish Banks, the European Investment Fund, GoldPoint Partners and two US subsidiaries of the Cigna Corporation.

The scheme is a crucial action under the Government's Action Plan for Jobs and aims to increase the availability of risk capital, the Department of Enterprise said in a statement.