Irish Funds lauds ‘game-changing’ legislation that could attract up to EUR20bn per year in global private capital
A new Irish financial services bill, which has been in the works for over five years, is expected to create 3,000 jobs by 2025, while attracting up to EUR20 billion per annum in global private capital, says Irish Funds.
The Investment Limited Partnerships (Amendment) Bill 2020, passed in the Dáil, is set to accelerate Irish fund industry growth, help firms facilitate the green recovery, and open the door for new global private fund market entrants to domicile in Ireland as a key base for European capital raises.
Firms will now have the potential to expand their private equity, infrastructure, renewables, and real estate offerings with a positive knock-on effect expected for local employment and Ireland’s position as a sustainable finance hub.
Funds industry centres across Ireland such as Cork, Limerick, Wexford, Kilkenny and Galway are also primed for increased business.
With the Irish funds industry having seen 40 per cent growth over the two-year period from 2018 to November 2020, with an additional 119 firms entering or expanding in the market during the Brexit transition, the new offer is expected to appeal particularly to fund promoters and managers from other common law countries, such as the US, UK, Hong Kong and Australia. This is due to Ireland’s position as the only common law country in the EU post-Brexit on 31 December and its importance as a global English-speaking gateway to Europe.
Pat Lardner, CEO, Irish Funds, says: “Ireland has today reasserted its position as a leading, full-service location for the global funds industry and I congratulate Government and the Minister for Financial Services Sean Fleming TD, on this milestone.
“This is game-changing in terms of Ireland’s global competitiveness and will enable and drive new business and opportunities, as well as retain business which has previously been lost overseas. It will help develop Ireland as a centre for green financing and align us with EU policy goals in sustainable finance.
“Importantly it will stimulate growth, safeguarding and creating jobs across the sector benefiting local communities throughout Ireland and increasing the industry’s Exchequer returns at a critical time for the economy.”
Partnership structures are used to fund long-term capital projects such as investments in renewable energy, energy efficiency, carbon capture and climate transition finance, with the new legislation expected to make Ireland a key global jurisdiction for raising capital for these activities.
According to Invest Europe, annual fund-raising in the European Private Equity space averaged more than EUR100 billion per year in the last three years. Ireland is expected to grow a significant market share of up to EUR20 billion per annum over the coming years based on its strong position in the wider funds market.