Dublin-based private-equity firm Erisbeg, cofounded by a former Blackstone executive Alan Kerr, has raised a total of €110 million for its flagship fund, with AIB committing the final €10 million.
Erisbeg was set up in 2017 by Mr Kerr and Thomas Davy, who previously headed up FTSE 100 company DCC’s environmental business before its sale the same year for about £219 million (€254 million).
Mr Kerr said €55 million from the fund had already been invested or committed. This includes the rolling out of previously-acquired majority stakes in BP Multipage, a communications firm which operates in the health sector, and Food Safety Company, a food safety consultancy, and other investments as “seed assets” into the portfolio, known as Erisbeg I LP.
BP Multipage recently bought Regional Electrical Maintenance, a provider of access control and security systems, with support from Erisbeg for an undisclosed sum, the firm said. It is understood that the combined entity is currently generating about €2 million in earnings before interest, tax, depreciation and amortisation.
Last month, Erisbeg provided funding to logistics company Dixon International Transport, in which it acquired a majority stake in December, to buy Monaghan-based Carna Transport. While fuel costs have been rising this year, Dixon, the fund’s largest investment, is able to pass this on to customers.
“We are certainly interested in supporting bolt-on acquisitions as management teams identify opportunities to consolidate their sectors,” said Mr Kerr.
While general mergers and acquisitions activity is slowing in the Republic and overseas amid concerns about the economic outlook as central banks fight soaring inflation with interest rate hikes, Mr Kerr said the areas in which it is invested — including logistics, medical equipment, training and compliance — are all growing.
“Our focus is on business services and companies in this sector have proven themselves very resilient and well prepared to withstand some more challenging times ahead,” he said.
Investors in the fund include Madrid-based asset manager Qualitas, other European private-equity investment firms, which Mr Kerr declined to name, and friends and family of the Erisbeg’s principals. The fund had a first close in April of last year with the raising of €75 million.
