Ireland Strategic Investment Fund - H1 2021 Update Incorporating Economic Impact Report FY 2020 - Ireland ...
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Ireland Strategic Investment Fund
H1 2021 Update
Incorporating Economic Impact Report FY 2020
Published
7 September 2021
Contents 1. H1 2021 ISIF Performance Update
2. FY 2020 Economic Impact Report
3. Additional InformationH1 2021 ISIF Performance
UpdateKey Points
Strong ISIF Portfolio investment return of +5.2% H1 2021, over €450m in investment gains. Over €2.2bn
1 since inception (Dec 2014).
Irish Portfolio €1.4 billion value added and Global Portfolio over €800 million value added since inception
2
(Dec 2014).
ISIF made 10 investments in H1 2021 bringing total ISIF commitments to €5.2 billion across 151 investments.
3 ISIF investment has catalysed a further €8.9 billion of co-investment commitments since inception - a multiple
of 1.7x the amount invested by ISIF.
Over 48,855 jobs supported and over €1.2 billion Gross Value Added to the Irish economy through ISIF capital
4 (to end 2020).
Note: All financials as at 30 June 2021 are preliminary and unauditedISIF Overview
as at end June 2021
Disc Irish Portfolio
folio ret
t i €3.6bn
or
on
P
ary
ted
Direc
Portfolio
ISIF
€14.3bn
5.1bn
€9
€
.2
€5.7 bn
b
n
Global Portfolio
€4.8 bn
€3.4 bn €5.6bn
€2.2 bn
€3.3 bn
€2.7 bn
€2.2 bn
€1.4 bn
Note: All financials as at 30 June 2021 are preliminary and unauditedISIF performance overview - end June 2021
Irish Portfolio €1.4 billion of value added since inception (Dec 2014) Return of +7.0%
H1 2021, +9.1% p.a. since inception
Global Portfolio over €800 million of value added since inception (Dec 2014) Return
of +4.0% H1 2021, +2.2% p.a. since inception
ISIF Portfolio over €2.2 billion of value added since inception (Dec 2014) Return of
+ +5.2% H1 2021, +4.1% p.a. since inception
ISIF made 10 investments in H1 2021 bringing total ISIF commitments to €5.2 billion
across 151 investments. ISIF investment has catalysed a further €8.9 billion of co-
investment commitments since inception - a multiple of 1.7x the amount invested by ISIF.
Note: All financials as at 30 June 2021 are preliminary and unauditedOver €200m committed during H1 2021
Investments include
€13M €15M €20M €42M €3M €3M
€15M €16M €25M €50M
Aviation Technology SME Lending Growth Equity VentureISIF Capital Unlocks Additional Co-Investment
Total Investment Committed in Ireland €billion
€15
€10 €8.9 bn
€8.6 bn
€8.4 bn
€7.5 bn
€5.7 bn
€5 €4.8 bn
€3.4 bn
€5.0 bn €5.2 bn
€4.6 bn
€2.2 bn €4.1 bn
€3.3 bn
€2.7 bn
€2.2 bn
€1.4 bn
€0
2014 2015 2016 2017 2018 2019 2020 2021
To 30 June
2021
ISIF
Third Party Co-Investors
Note: All Financials as at 30 June 2021 are preliminary and unauditedFY 2020 Economic Impact Report
FY 2020 Economic Impact Metrics
Reflects detailed survey data for FY 2020. Given the quantum of surveys of investees, underlying investees of indirect investments, and
the comprehensive analysis completed, finalisation and publication of this economic impact data lags 6 months.
Jobs Supported by ISIF capital: 48,855 • During 2020, total jobs supported in the portfolio
(direct and indirect) has increased largely driven by
YoY: +9,889 jobs investments made under the PSRF strategy mandate
1
• The year-on-year decline in GVA within the portfolio
Gross Value Add (GVA): €1.277 billion has largely been driven by the addition of PSRF
stabilisation investments, many of which experience
YoY: (€285) million significant downward pressures on performance due
to COVID-19.
The portfolio has delivered a modest increase in
•
Turnover: €3.5 billion turnover year-on-year, partially driven by the addition
of PSRF investments, and also as a result of some
YoY: +€0.5 billion downward COVID-19 pressures.
1 Gross Value Added (GVA) is the enterprise or sector level measure of goods or services produced which, when aggregated across all enterprises and adjusted for taxes and subsidies, equals Gross Domestic Product (GDP)FY 2020 Economic Impact Metrics
Reflects detailed survey data for FY 2020. Given the quantum of surveys of investees, underlying investees of indirect investments,
and the comprehensive analysis completed, finalisation and publication of this economic impact data lags 6 months.
• Increase in employment within the Dublin region Employment by Region: 60% Dublin / 40% ex-Dublin
largely driven by the addition of stabilisation
investments under PSRF.
YoY: Increase to Dublin region
• The wage bill has remained relatively flat year-on- Wage Bill: €1.3 billion
year reflecting some minor falls in average salaries
as well as modest growth in direct jobs. YoY: +€66 million
Year-on-year, exports have declined from 28% to
• Exports: €824 million
23% of turnover. PSRF investments record minimal
exports and, therefore, do not have a material impact
on this figure. YoY: (€10) millionRegional economic impact of investments
Geographically balanced, broadly in line with the regional economic activity*
3% 2% 6%
Jobs ISIF GVA
Capital
3% 6% 7% Deployed
Jobs ISIF GVA
Capital
Deployed
60% 60% 40%
Jobs ISIF Capital GVA
Deployed
16% 18% 22%
Jobs ISIF GVA
Capital
Deployed
18% 13% 27%
Jobs ISIF Capital GVA
*CSO Regional Split of GVA (2016)
Deployed
Dublin 45% Leinster 19% Munster 24%
Connacht 7% Ulster 5%Employment supported by ISIF across the portfolio since inception
48,855
Underlying Portfolio
+ 2,935
During 2020, the number of jobs
38,967
PSRF Stabilisation supported in the portfolio increased.
+ 16,354 This was largely driven by the addition
32,068 of stabilisation investments made
30,786
under the PSRF strategy mandate.
H1 2020 Changes in job numbers within the
21,930 = 29,566 underlying portfolio reflect a number
of exits, as well as a reduction in
17,940 construction jobs - a direct
consequence of lockdowns enforced
during the COVID-19 pandemic.
2015 2016 2017 2018 2019 2020Additional Information
ISIF Overview During 2020, the COVID-19 pandemic created significant challenges for businesses in Ireland, and caused unemployment, global disruption and uncertainty. In response to this, in May 2020 the Minister for Finance announced the establishment within ISIF of a €2 billion Pandemic Stabilisation and Recovery Fund (PSRF) to invest in medium and large-scale businesses in Ireland impacted by COVID-19. Accordingly, ISIF adjusted its strategy to give priority to commercial investment in line with its statutory mandate to address the needs and critical gaps emerging in the economy. The underlying approach of the PSRF has been to invest on a commercial basis to support the economy moving from an initial stabilisation phase to a later recovery phase, before ultimately reverting to the priority themes in ISIF’s strategy. Underpinning this approach has been the principle that ISIF could best support economic activity in Ireland by enabling otherwise viable medium and large businesses to sustain themselves in the near-term, and for these businesses to deliver additionality through their ability to persist and support employment over the medium term. During the course of 2020, a number of stabilisation investments were made under the revised PSRF strategy mandate, in addition to priority theme investments already concluded in line with ISIF’s existing strategy. The FY2020 Economic Impact data presented within this report therefore reflects the combination of priority theme and PSRF investments made by ISIF throughout 2020.
Assumptions, Methodology and Disclaimer
The NTMA adopts a conservative approach to all data and in many cases excludes data where ISIF does have an impact but where it is difficult to quantify.
Assumptions and Methodology
1. The NTMA relies on the data collected from investees. While economic impact data is somewhat complicated, the NTMA has adopted a structured approach to the collection and analysis of the data.
2. Underlying investees are either direct or indirect (i.e., through funds). The economic impact data is gathered through a semi-annual survey of the direct and indirect underlying investees. Economic impact of an
underlying investee is only included once – i.e., where ISIF has more than one indirect investment in an underlying investee, the duplicate economic impact is removed from the analysis.
3. In cases where ISIF finances a specific project in a large entity, the NTMA only captures the economic impact for the project and not any benefits it may bring to the wider corporate entity.
4. The Fund does not include the economic impact from investments ISIF has exited.
5. There is some time lag between the commitment to an investment and the achievement of economic impact. Typically, economic impact is generated when there is a draw-down on committed capital and this
can be some time after a commitment to an investment.
6. The NTMA completes a sense check of all survey data; however, the NTMA is reliant on the underlying investees to provide accurate data and is not in a position to verify the data submitted.
7. Survey data provided in USD or GBP has been converted to EUR using a 12-month average FX rate sourced from Central Bank of Ireland.
8. The regional distribution of capital invested is weighted based on the capital invested as at 31 December 2020 and based on the underlying investees detailing the location/regional activities of the underlying
investee/project.
9. The regional distribution of underlying investees’ employment and gross value added is based on data provided by the underlying investees detailing the number of jobs and earnings generated regionally.
10. The majority of underlying investees provided the relevant data as at 31 December 2020 directly. There are some exceptional cases where data was unavailable so the following assumptions were applied:
In a very small number of construction projects, a Construction Industry Federation multiplier was applied to the capital expenditure to estimate the number of employees.
In the case of projects and businesses where third party/contracted headcount was provided but a wage bill was not available, an average wage based on CSO average earnings was applied to the third
party/contracted headcount.
In a very small number of cases, assumptions were based on relevant industry data such as Teagasc, IWEA and Bord Bia.
11. In line with industry standards, a conservative indirect employment multiplier is applied to direct jobs. The NTMA calculation of employment multipliers is based on CSO methodology.
12. Exports for some investees are based on an estimate percentage of turnover – i.e., a reasonable expectation of exports has been created based on underlying business activity.
Disclaimer: The information in this presentation is issued by the National Treasury Management Agency (NTMA) for informational purposes. The NTMA makes no warranty, express or implied, nor assumes any liability or
responsibility for the accuracy, correctness, completeness, availability, fitness for purpose or use of any information that is available in this presentation nor represents that its use would not infringe other proprietary rights.
The information contained in this presentation speaks only as of the particular date or dates included in the accompanying slides. The NTMA undertakes no obligation to, and disclaims any duty to, update any of the
information provided. The contents of this presentation should not be construed as legal, business or tax advice.You can also read
