M&G takes major stake in Ireland's largest non-bank lender

M&G has taken a 41% in Finance Ireland, Ireland's largest non-bank lender, as the international savings and investments firm diversifies and expands.

The investment is on behalf of the £143bn Prudential With Profits Fund and external client funds managed by M&G Investments.

Finance Ireland, founded in 2002 by chief executive Billy Kane, employs 170 people and is the most diversified lender in the market, providing residential mortgages, commercial property, car finance, leasing, SME financing and lending to the agricultural sector.

In 2018, Finance Ireland entered the residential mortgage market and has become a material player in its domestic market, with M&G having purchased around €1bn of these mortgages in the past three years for the benefit of its clients.

In 2021, the company's lending figure passed €1bn for the first time and the new €50m equity raised will underpin future lending growth and expansion.

The company also introduced long-dated fixed rate mortgages with terms of up to 25 years, supported by an existing funding agreement with M&G Investments.

Will Nicoll, chief investment officer of M&G's Private & Alternative Assets division, said: "Finance Ireland is the largest non-bank lender within the Irish market and is well positioned to take advantage of favourable structural changes as some banks withdraw for core areas of lending. 

"In addition to the growth potential of the business, the investment provides us with long-term funding opportunities as we continue to partner with the team to bring innovative financing solutions to Irish businesses and consumers."

Billy Kane, founder and chief executive of Finance Ireland, said: "This transaction is a huge vote of confidence not just in Finance Ireland but in the Irish economy, providing us with long-term investors to grow and expand our customer offering and execute our long-term growth strategy.