Dáil Éireann Debate, Thursday - 24 January 2013
27. Deputy John McGuinness asked the Minister for Jobs, Enterprise and Innovation the number of indigenous companies that have been approved for support under the development capital scheme; the amount of capital that has so far been drawn down; the number of jobs created by companies in receipt of this capital; and if he will make a statement on the matter. [3336/13]
View answerThe Development Capital Scheme is aimed at addressing a funding gap for mid-sized, high-growth, indigenous companies with significant prospects for jobs and export growth. Initially, the Government allocated €50 million of exchequer funding with the intention of leveraging a further €100 million of private sector investment.
In April last year, I launched an 'expression of interest' process inviting Fund Managers to submit proposals to Enterprise Ireland for commitments under the Development Capital Fund Scheme. This expression of interest process closed last Summer. Following an extensive due diligence process, the Board of Enterprise Ireland at its December meeting approved a number of commitments to Fund Managers, in principle. These Fund Managers are now in the process of fund-raising and/or closing their funds, allowing them to commence investing in Irish companies. The timeline for this process is driven by the private sector.
The funds will be managed by private sector fund managers who will make investment decisions in the context of an agreed fund investment strategy. The Scheme was established to create funds that would invest between €2 million and €5 million in medium sized established companies by way of equity, quasi equity and/or debt.
In December 2012, during the Budget debates, I announced that the Government would extend the original scheme and allocate an additional €25 million to the Scheme. This allocation is targeted to leverage a further €50 million from the private sector over the duration of the scheme, making a total of €225 million in funding available to mid-sized indigenous firms with significant prospects for jobs and export growth.
These Funds will be established and announced in the near term, and the fund managers will then commence investment. It is forecast that approximately 50 companies will receive investment to support their growth strategies.
At this point no moneys have been drawn down and it will only be following a period of investments that my Department will be able to assess the impact on job creation.
