Erisbeg, an Irish private equity fund, secures €175 million for investing in local SMEs

Erisbeg, a private equity firm based in Dublin, has successfully raised €175m for its second fund, with notable investors including AIB, Bank of Ireland, and the Ireland Strategic Investment Fund.

Specializing in investing in Irish SMEs within the business services sector, Erisbeg aims to support these companies in scaling both locally in Ireland and internationally through organic growth and acquisitions. The firm typically collaborates with the existing management teams and shareholders of the businesses they invest in.

The new fund, known as Erisbeg II LP, saw an initial close at €100m back in December, and since then, fundraising efforts have continued, ultimately resulting in a 75% increase in the fund’s value. This successful fundraising is a testament to the trust and confidence of investors in Erisbeg’s ability to deliver returns.

Erisbeg’s first fund, Erisbeg I LP, raised €110m between 2021 and 2022 and strategically invested in six platform companies, such as Medray, ORS, Dixon, and Occupli. By acquiring a total of 27 additional companies to complement these platforms, Erisbeg’s first fund was able to foster substantial growth for its portfolio companies.

One notable achievement for Erisbeg was the successful exit of its investment in Medray to UK private equity firm LDC for approximately €60m in July. This exit resulted in a return of 3x on Erisbeg’s initial investment in Medray, with an impressive internal rate of return (IRR) for the fund of 36%.

Expanding their investor base, Erisbeg’s new fund attracted not only their previous investors from Erisbeg I LP but also garnered interest from institutional investors from Norway, Belgium, and The Netherlands. This diversified investment base reflects the confidence these institutions have in Erisbeg’s investment strategy and track record.

Already, Erisbeg II LP has made investments in two platform companies: EMR Integrated Solutions, which offers integrated operational telecommunications and cybersecurity solutions, and CHM Group, a specialist in traffic management solutions. Led by partners Alan Kerr, Thomas Davy, Robert Burns, and Andrew Murphy, Erisbeg remains proactive in seeking out new investment opportunities across various sectors.

Reflecting on the successful fundraise, Alan Kerr, the founder and managing partner of Erisbeg, expressed gratitude towards their Irish and international institutional investors for their unwavering support. He highlighted the efficient timeline of the fundraise, achieving an initial close at €100m in December and surpassing the target to reach just over €175m for the fund.

Looking ahead, Erisbeg remains optimistic about the performance of their investments made through the first fund and anticipates making significant new investments through the recently raised fund in the coming months. The firm is committed to seeking out and capitalizing on promising market opportunities to deliver value for their investors.