The Ireland Strategic Investment Fund (ISIF) has announced that it will invest €68m in two international decarbonisation funds as part of its €1bn five-year climate action programme. The funds will be managed by Energy Impact Partners (EIP), an investment fund based in New York, which has more than $3bn (€2.77bn) in assets under management. Through the investment, EIP will establish an office in Dublin with plans to invest in emerging Ireland-based decarbonisation and energy technology companies. Climate investor and entrepreneur Arthur Pierse will be EIP’s representative based on the ground in Ireland.
The ISIF is investing in two of EIP’s funds, the European Fund at €34m which primarily focuses on €10m-€25m growth equity and late-stage investments and the Deep Decarbonisation Frontier Fund at $35m (€34m) which focuses on investing in revolutionary early-stage companies that have the potential to fully decarbonise the global economy. This move builds on approximately €500m of committed investments by ISIF in climate action as the body continues its €1bn investment programme in this sector.
The investment will target segments such as energy supply decarbonisation, the electrification of industrial processes, and tech-enabled infrastructure. The combination of early-stage technology with support for growth stage businesses offered by the two funds in which ISIF is investing is a unique proposition that will be of real benefit to new climate businesses in Ireland, said ISIF head of climate Paul Saunders.
“This investment shows how we can leverage our investment capability to build a deeper, stronger network with climate investors from all over the world — and ultimately attract more international capital to Ireland while supporting emerging Irish businesses in this space,” Saunders added.
EIP founder and managing partner Hans Kobler said: “Our model of bringing together brilliant entrepreneurs with key industrials across all sectors of the economy, will make it easier for Irish technologies to scale in both Europe and North America.” With ISIF’s investment, EIP will establish an office in Dublin with plans to invest in emerging Ireland-based decarbonisation and energy technology companies. Climate investor and entrepreneur Arthur Pierse will be EIP’s representative based on the ground in Ireland.
The ISIF’s investment in EIP’s funds is part of its wider €1bn investment programme aimed at supporting Ireland’s transition to a low-carbon economy. The programme aims to support the development of innovative technologies and businesses that can help Ireland meet its climate targets and reduce its carbon emissions.
The ISIF is a sovereign development fund that was established in 2014 to invest in a range of strategic sectors, including infrastructure, housing, and healthcare. The fund is managed by the National Treasury Management Agency (NTMA) and has a mandate to invest on a commercial basis in projects that support economic growth and job creation in Ireland.