Activate Capital to grow to €1bn with additional fundraising.
ISIF and KKR commit an additional €270 million.
Home builders “materially stepping up production” in Ireland.
Activate Capital (“Activate”), the dedicated residential development lender, today announced the first close of its new €500 million fundraising. In this funding round, the original investing partners in Activate, the Ireland Strategic Investment Fund (“ISIF”) and KKR have committed an additional €270 million to their existing investment of €500 million.
Since commencing business in 2016, Activate has deployed in excess of €400 million across multiple developments incorporating 4,200 new homes.
Activate will create an opportunity for third party institutional investors to invest in the second half of this year with the intention of expanding its available capital for residential development finance to €1 billion.
“Home builders are materially stepping up production In Ireland”, said Robert Gallagher, CEO of Activate. “Our pipeline is very strong and we have good visibility into 2019 and beyond. The additional commitment of €270 million by ISIF and KKR underpins our ability to continue to lend to good projects across the country. We will be creating an opportunity for additional institutional investors to participate in Activate in the coming months as we build the business to €1 billion.”
“ISIF is focused on encouraging private capital to invest alongside it in sectors and areas of the Irish economy which continue to experience market failures”, said Eugene O’Callaghan, Director of ISIF. “Residential housing is an important sector for ISIF in this context. We have committed more than €600m to platforms that are targeting delivery of more than 10,000 units in the main urban centres and Activate is a central part of this strategy. The additional funding being announced today will enable Activate to meet the demand that clearly exists from the development sector”.
“KKR is pleased that the partnership with ISIF in providing capital facilities to home builders in Ireland has progressed so well”, said Dan Pietrzak, Member at KKR. “The involvement of Activate in the funding landscape with its focus on delivery and speed of execution has been positive for the market. It has enabled developers to take the initiative to address the significant housing shortfall.”
Tuesday 3rd July 2018
The Ireland Strategic Investment Fund (ISIF), managed and controlled by the National Treasury Management Agency (NTMA), is an €8.7 billion sovereign development fund with a unique mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
Activate Capital is a leading provider of residential development finance in Ireland. It provides homebuilders with significant capital, in a timely manner, to enable them to acquire sites and commence scale production. To date, Activate Capital has funded multiple developments with delivery capability of over 4,200 homes.