South Africa-based asset management firm Investec is aiming to launch a €75m ($85m) venture capital fund aimed at early-stage startups based in Ireland, the Irish Times reported on Monday.
The fund will act as a successor to the €75m Ulster Bank Diageo Venture Fund, which was established in 2008 and is set to wind down next year. It is unclear whether beverage company Diageo or financial services firm Ulster Bank will back the new fund.
Investec is reportedly seeking investment from state-owned enterprise support agency Enterprise Ireland and sovereign wealth fund Ireland Strategic Investment Fund.
Ulster Bank Diageo Venture Fund made a profit of €15m in 2016 from exits, up from €13m the preceding year. It generally invests between €500,000 and €5m, having backed 20 companies across sectors such as cloud computing, healthcare and social media.
One of the fund’s biggest exits is Brite:Bill, a telecom billing software developer acquired by software producer AmDocs for €73m in cash in September 2016. The fund received a €14.8m payout, having invested €2.5m for a 31.9% stake in 2010.
Michael Murphy, managing partner of Investec’s venture capital activities, said: “We have support and will raise the fund. We would love to have it nailed down within six months.”