Ireland’s €8bn sovereign wealth fund has partnered with its Chinese counterpart for the second time to invest €150m in technology companies in the respective countries.
The Ireland Strategic Investment Fund (ISIF) and CIC Capital – part of the China Investment Corporation – announced the launch of the China-Ireland Growth Technology Fund II in Beijing today.
It marks the second time the two countries have partnered on a technology investment project, after the launch of a $100m fund in 2014.
The new vehicle will invest in “high-growth Irish technology firms with an ambition to access the Chinese market, and Chinese firms seeking to use Ireland as a base for European operations”, according to a statement from the ISIF.
CIC Capital and the ISIF will each invest €75m into the fund. It will be co-managed by Ireland’s Atlantic Bridge Capital and China’s WestSummit Capital.
ISIF director Eugene O’Callaghan said: “China has emerged as a leader in many areas of technology over the last four years. We look forward to working with CIC Capital again on this new fund, which will offer a strong economic return to Ireland, as Chinese companies looking to gain access to Europe use Ireland as a base for their operations.
“The Irish companies that will benefit from the fund will gain from the opportunities to grow their business and product potential in the Chinese market.”
Pascal Donohoe, Ireland’s minister for finance, public expenditure and reform, said the collaboration was “a great opportunity to promote Ireland’s economy to international businesses”.
The first incarnation of the China-Ireland Growth Technology Fund helped create 350 jobs in Ireland, the ISIF said. One of the fund’s core objectives is to boost employment in the country through domestic investment.