Ireland Strategic Investment Fund
The Ireland Strategic Investment Fund (ISIF), managed and controlled by the National Treasury Management Agency (NTMA), is a sovereign development fund with a unique mandate. The ISIF is comprised of the Discretionary Portfolio (€8 billion at end-September 2020) and the Directed Portfolio (€2.2 billion at end-September 2020). The Discretionary Portfolio has a statutory mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland. Its predecessor was the National Pensions Reserve Fund (NPRF). The Directed Portfolio (primarily public policy investments in AIB and Bank of Ireland) continues to be held within the ISIF, under direction from the Minister for Finance.
ISIF has a long investment time horizon and therefore can act as a permanent or patient source of long-term capital. ISIF’s flexible capital can adapt and be responsive to the capital requirements of businesses and projects in the Irish market.
In July 2018, the Minister for Finance announced that the ISIF would focus on Priority Themes that support Project Ireland 2040; Regional Development, Housing, Indigenous Businesses, Climate Change and sectors adversely affected by Brexit.
In May 2020, following a review by the Minister for Finance of potential supports for Ireland's economy during the Covid-19 pandemic, a €2 billion Pandemic Stabilisation and Recovery Fund (PSRF) was established. The PSRF is to provide stabilisation capital to act as an enabler for otherwise viable medium and large enterprises that are experiencing trading or liquidity difficulties caused by Covid-19. It will also support and accelerate economic recovery and growth more widely, with a particular focus on ISIF’s Priority Themes.
In addition ISIF will invest on a commercial basis in companies that are considered critical to Ireland’s ability to directly tackle the pandemic, namely those in the healthcare sector. In line with the existing mandate and long-term patient capital approach, ISIF will continue to support and work with the existing portfolio of direct and indirect investments and to support smaller and medium size Irish businesses through indirect debt and equity fund platforms, which are vital channels in the SME and venture sectors.
For further information on the Ireland Strategic Investment Fund please visit www.isif.ie