Bank of Ireland partners with Paul Capital

Bank of Ireland has established a joint venture with Paul Capital Partners, a US private equity specialist, to provide private equity fund of funds products and advisory services to investors.
 
The Irish bank said the move was another step to a diversified portfolio of investment boutiques. Paul Capital is looking to build on the bank’s distribution and to expand its fund of funds offering.
 
Investor appetite for fund of funds products is undiminished. Morgan Stanley closed its third fund of funds product last week on $1bn (€800 million)
 
The new joint venture will be called Paul Capital Top Tier Investments and will be based in San Francisco, California.
 
Bank of Ireland Group has paid $25m in cash for a 50% share in the joint venture and may increase its shareholding up to 70% no earlier than 2008 on a pre-agreed basis.
 
In addition Bank of Ireland Group has paid US$5m in respect of interests in existing funds of funds. 
 
Paul Capital has contributed its existing private equity fund of funds business with assets of $1.1bn under management, including the firm’s fund of funds team and associated investment resources and facilities in return for a 35% interest. Senior management own the remaining equity.