A number of unnamed institutions have approached the Irish Association of Investment Managers (IAIM) about investing in Irish banks, it was confirmed tonight.
The IAIM said in a statement these institutions "believe that the process of recapitalising the Irish banks offers an investment opportunity and returns which are attractive to them and their clients".
Although it is not known how big a fund the IAIM consortium would have at its disposal, it is being presented as an alternative to the international private equity funds who have expressed an interest in investing in Irish banks.
These include JC Flowers, the Carlyle Group and two unnamed Middle Eastern sovereign equity funds.
The statement said the IAIM, on the request of the institutions, conveyed their interest in investing in the banks to the Government today.
It said the institutions wanted to co-invest with the State in the raising of new Tier 1 capital for Irish listed banks.
"A number of domestic and overseas institutions have indicated their support for the initiative. Other overseas institutions will be contacted over the coming days," it added.
"The proposal would involve large pension funds and could also facilitate individual investors."