Better Capital's BECAP12 Fund LP has entered into a joint venture with the National Pensions Fund of Ireland (NPRF) in an effort to boost the country's frail economy, the company announced Wednesday.
The investment group said the venture with Ireland's €14bn social welfare and public service pension fund would help distressed businesses.
It will be operated through Better Capital Ireland, a new Guernsey limited partnership managed by BECAP12 GP LP, the general partner of BECAP12 Fund LP (2012 Fund).
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
NPRF has committed €50m to Better Capital Ireland which hopes to generate "attractive total returns" from investing in a portfolio of struggling businesses in Ireland".
Latest Videos FromMoneyWeek
Better Capital anticipated that returns would come largely from capital growth.
Richard Crowder, Chairman of Better Capital, said: "The joint venture with the National Pensions Reserve Fund of Ireland is an important development in the implementation of the 2012 Fund's investment strategy, which has a primary focus on investments in businesses with significant activities within the United Kingdom or Ireland."
"It enables Better Capital to partner with a significant sovereign entity to enhance the 2012 Fund's access to a market that offers considerable potential for turnaround investment opportunities."
Better Capital LLP, a consultant to BECAP12 GP LP, will establish a Dublin office which will be operational this month.
Paul Carty, Chairman of NPRF, added: "Our joint venture with turnaround investor specialist Better Capital means that the NPRF will be able to deploy capital to distressed Irish companies.
"This is a significant step in the refocusing of the NPRF towards investment in areas of strategic importance to the Irish economy while allowing us to target attractive total returns."
RD
