Tánaiste Launches Euro 75M Ulster Bank Diageo Venture Fund

The Tánaiste and Minister for Enterprise Trade and Employment, Mary Coughlan T.D., has announced the first closing of the Ulster Bank Diageo Venture Fund Limited Partnership - a new €75m fund to be managed by NCB Ventures, the venture capital arm of NCB Group.

The fund is the fifth new fund supported by Government through Enterprise Ireland's €175m Seed and Venture Capital Programme 2007-2012.

The Ulster Bank Diageo Venture Fund Limited Partnership will invest in companies at early and expansion stages of development across a broad range of industrial sectors. The first closing of €75m exceeded expectations and further investments will be accepted up to a final closing of €100m.

Making the announcement the Minister said: "I am delighted to announce the creation of the €75m Ulster Bank Diageo Venture Fund which represents the third fund collaboration between Enterprise Ireland, Ulster Bank, Diageo and NCB in the past 10 years.

"This fund significantly increases the availability of capital for companies seeking to expand and internationalise their businesses and marks a vital contribution to the ongoing development of the venture capital sector in Ireland.

"I would like to congratulate NCB on their success in attracting such a broad range of investors spanning the public and private sectors and, working in close co-operation with Enterprise Ireland and the other investors, making this new Fund a reality."

Investors in the Ulster Bank Diageo Venture Fund Limited Partnership comprise a unique combination of corporates, financial institutions, pension funds, private investors and State agencies including Enterprise Ireland, Ulster Bank, Diageo Ireland, the National Pensions Reserve Fund, NCB and private clients of NCB. The geographical focus will be the island of Ireland and investments will range from €0.5m to €5m per company.

Conor O'Kelly, Chief Executive Officer of NCB Group said: "We are very pleased with the level and quality of investor participation in this Fund.

"The high level of commitments achieved is a strong vote of confidence from public and private sectors in the future growth potential of Irish businesses, notwithstanding the current challenging economic environment."

Robert Gallagher, Chief Executive Ulster Bank Corporate Markets, said: "Ulster Bank's investment in this new fund demonstrates our continuing commitment to support entrepreneurial business ventures in Ireland that require equity capital to grow and expand.

"The investment strategy of the Ulster Bank Diageo Venture Fund is aligned with the Bank's overall commitment to provide a range of funding and other supports to businesses operating at various stages of development.

"We are particularly pleased that this fund will target investee companies spread across the island of Ireland."

Michael Murphy, Managing Partner of NCB Ventures added: "The availability of new funds for investment in early and expansion stage companies is vital if we are to continue to encourage and promote entrepreneurship.

"Given the shortage of liquidity in financial markets it is an opportune time to back innovative entrepreneurs in small and medium sized businesses that offer competitive advantage in an increasingly global marketplace."