M&G has acquired a 41% stake in non-bank lender Finance Ireland for 50 million euros.
The investment in Ireland’s largest non-bank lender was made on behalf of the £143bn Prudential With Profits fund and external client funds managed by M&G Investments.
Finance Ireland offers a hugely diverse range of lending products including residential mortgages, commercial property, car finance, leasing, SME finance and agricultural loans.
In 2021, the company’s total loans exceeded €1 billion for the first time and €50 million of new equity raised from M&G will support future loan growth and expansion.
In 2018, Finance Ireland entered the residential mortgage market and quickly established itself as a significant player in its home market, with M&G having purchased around €1bn of such mortgages over the past three years to benefit of its customers.
Last year the company introduced long-term fixed rate mortgages with terms up to 25 years, backed by an existing financing agreement with M&G Investments.
Finance Ireland was launched in 2002 by CEO Billy Kane and today employs 170 people.
It offers innovative products such as long-term fixed rate mortgages and its award-winning MilkFlex loan, which has lent over €250 million to Irish dairy farmers.
Will Nicoll, Chief Investment Officer of M&G’s Private and Alternative Assets Division, said: “Finance Ireland is the largest non-bank lender in the Irish market and is well placed to take advantage of favorable structural changes as some banks withdraw for major lending areas. . In addition to the potential for business growth, the investment provides us with long-term funding opportunities as we continue to partner with the team to bring innovative finance solutions to Irish businesses and consumers.
Kane added that “M&G is familiar with our business as lenders to our residential mortgage portfolio” and said the timing of this acquisition is also important “given the exit of Ulster Bank and KBC from the market as customers search for a new provider for their mortgage. and for the financing of their business”.
M&G’s investment is managed by its specialist finance and consumer lending team which was formed in 2017 and is part of the firm’s £72bn private and alternative assets division.