DunPort raises €335m at final close for Oak Corporate Credit
- SME focused lending fund launched in July 2021, with €80m of capital deployed to date
- European Investment Fund commits €70m, marking its first diversified debt fund investment in Ireland
DunPort Capital Management (“DunPort”) is pleased to announce the final close of its SME focused direct lending fund, Oak Corporate Credit DAC (“Oak”), at €335m following a €70m commitment from the European Investment Fund (“EIF”). Oak is also backed by a €95m commitment from the Ireland Strategic Investment Fund (“ISIF”) and supported by a number of other domestic and international institutional investors.
The EIF subscription marks the first diversified debt fund investment in Ireland by the specialist provider of risk finance. The agreement is backed by the Pan-European Guarantee Fund, as part of the European Union’s €540 billion package to address the economic impact of COVID-19.
Since the launch of the Oak fund in July 2021, DunPort has deployed approximately €80m in support of companies across Ireland and the UK. This brings the total amount of capital deployed by DunPort’s experienced team of investment professionals to €430m across 443 different transactions with 37 companies since DunPort was established in 2017.
Through the Oak fund, DunPort is targeting the provision of tailored and flexible debt capital solutions to lower mid-market companies with earnings of between €1m and €10m in Ireland and the UK. Capital from the fund is deployed in support of established businesses, across a diverse range of sectors, that require debt to fund the scaling of their activities through investment and development expenditure, acquisitions, recapitalisations or to resolve legacy financing issues.
“We continue to see strong and sustained demand for flexible debt solutions from a wide range of advisors, sponsors and business owners in both Ireland and the UK,” commented Pat Walsh, Executive Director of DunPort. “Following the successful initial deployment of capital across a number of transactions through our latest credit vehicle, Oak, we are very pleased to announce the fund’s upsizing at its final close. The additional capital, which includes a significant commitment from the European Investment Fund, will facilitate the continued support of SMEs across our core markets. With a robust pipeline of opportunities currently under review, we at DunPort look forward to building on the strong relationships with our investor base and the wider intermediary network to enhance our position as a leading alternative debt capital provider in Ireland and the UK,” Mr Walsh said.
“At DunPort, we have identified an attractive opportunity in the lower mid-market to invest in well-established businesses with strong risk adjusted returns. We are delighted to have the support of the EIF and all of our investors in pursuing this investment strategy,” added Ross Morrow, Executive Director of DunPort. “Our targeted niche of the market has a large volume of transactions but with a limited supply of alternative debt capital. DunPort’s €335m fund offers borrowers a differentiated capital solution to other potential sources based on speed of response, access to decision makers, certainty of execution and flexibility in our investment process, as well as continuity of relationship management throughout the term of the funding,” Mr Morrow concluded.
Alain Godard, Chief Executive of the EIF, added: “We are delighted to support DunPort, a leading private debt player, to provide flexible financing to Irish SMEs and entrepreneurs. Thanks to this investment, also backed by the pan-European Guarantee Fund and being the first diversified debt fund investment in Ireland, we will contribute to supporting the economic recovery of Irish companies and drive growth, innovation and employment in Ireland”