Tánaiste Announces Bank of Ireland Investment in VC Fund

€6.35m Bank of Ireland commitment boosts Kernel Venture Fund to €19m

Fund actively seeking new investments across a wide range of sectors

Mary Harney, Tánaiste and Minister for Enterprise Trade and Employment today, (Tuesday 17 June 2003) announced that Bank of Ireland Business Banking is investing €6.35 m with Kernel Capital Partners in it's venture capital fund. The Fund, a public private partnership with Enterprise Ireland, will now be known as the Bank of Ireland Kernel Partners Private Equity Fund with a total size of €19 m.

Making the announcement the Tánaiste said: " This investment is an endorsement of Kernel Capital Partners and furthers Enterprise Ireland's objective of leveraging State investment to secure substantial private sector investment in building a competitive venture capital market. Its location in Cork is further evidence of Enterprise Ireland's focus on developing new funds in the regions."

The investment completes the second closing of the Fund and brings its total size to €19m. The fund is focused on early and mid-stage investments of between €300,000 and €1,500,000 that will be available across a wide range of industry sectors. It is the only such fund based in Munster.

Mike Soden, Bank of Ireland Chief Executive said "Bank of Ireland is determined to be the Bank of choice for business in Ireland. Unlike many other venture funds at present, this fund will be actively seeking new investments across all sectors of industry. In addition, the combination of Bank of Ireland's reach and experience will strengthen the fund's availability to deliver finance deals - both debt and equity related - that will be to the benefit of investee companies".

This investment furthers Bank of Ireland's very active commitment to venture capital activity. To date four investments have been made by the recently established Bank of Ireland Venture Capital fund (BOIVC) in addition to the Bank's long standing commitments to the various funds managed by Delta Partners.

Niall Olden, Founder and Chief Executive of Kernel Capital Partners said "We are very pleased to have formed a strategic relationship with the Bank of Ireland. The additional funds secured allow us to broaden our scope of investment beyond concentrating exclusively on ICT and to take advantage of the significant venture capital opportunities that exist in other sectors of industry. In addition the relationship with Bank of Ireland provides the Fund with the ability to offer its investee companies a combination of debt and equity based transactions and access to the full range of commercial banking opportunities where appropriate. We view our partnership as one that gives considerable strength to the fund, broadening its channel to market, enhancing its credibility especially in the international arena, while increasing the resource base of the Fund".

ENDS