YEARBOOK & DIRECTORY
Finance Dublin Yearbook 2025
Funds and fund finance spurring momentum in Ireland as an IFS centre
The continued growth of Ireland as an international domicile for funds, including UCITS and AIFS, as well as SPVs has seen the total value of assets under these headings rise to over €6 trillion in the jurisdiction by the end of 2024. The underlying momentum in these areas and the development of new hybrid specialisms, notably fund finance, an area of banking and finance that provides lending solutions to investment funds is enabling a continuous expansion in the range of services available as this article elaborates. It is jointly authored by Oisin McClenaghan, Richard Kelly, Laura Holtham and Jennifer Dobbyn, all partners at Ogier’s Ireland office.
The financial services industry in Ireland was established over 30 years ago and since then Ireland has become a leading global jurisdiction and centre of excellence for financial services. 
With assets under management of Irish domiciled funds hitting €5 trillion in both Undertakings for Collective Investment Schemes (UCITS) and Alternative Investment Funds (AIFs) at the end of 2024, Ireland is widely expected to become the largest fund domicile in Europe in the next few years. Ireland is also the largest domicile in Europe for special purpose vehicles (SPVs)1 with over €1.15 trillion in assets held by Irish SPVs at the end of 2024. It is estimated that the Irish financial services sector directly supports over 56,000 jobs throughout the country.
Globally, leading asset managers use Irish investment vehicles as a key prong in the delivery of their investment strategies to a global investor base. The top ten global asset managers with Irish funds, ranked by assets as at June 2024, are BlackRock, Vanguard, PIMCO, Mercer, HSBC, State Street, Goldman Sachs, DWS, Legal & General and Insight.
The top ten global asset managers using Irish SPVs as at December 2024 are Bain Capital, KKR, Morgan Stanley, Carlyle, Fortress Investment, CALC (China Aircraft Leasing Group), BBAM Aviation, BlackRock, Oaktree and Blackstone.
UCITS
Ireland has an unrivalled UCITS offering owing to a number of factors including its robust regulatory framework, depth of service providers and favourable tax regime. Irish domiciled funds experienced a remarkable 22% increase in assets in the past year, of which 58% is attributed to UCITS.
One of the main attractions of a UCITS is the ability to avail of the EEA marketing passport. Ireland is a major domicile for UCITS management companies and a location to distribute UCITS on a global basis. Ireland is seen as the gateway to Europe with Irish funds being distributed to over 90 countries world-wide.
In recent times there has also been an exponential growth in exchange traded funds (ETFs), which combine the characteristics of a traditional UCITS but are traded intra-day on exchanges using real time pricing. Ireland has emerged as the leading European domicile for ETFs. At present ETFs domiciled in Ireland account for more than 73% of the total European ETF market.2
One of the key attractions for Ireland as a domicile for ETFs is the comprehensive network of tax treaties. This includes the double tax treaty with the United States which provides for a withholding tax of 15% on U.S. dividends (compared to 30% in other jurisdictions). A number of other factors and trends have also contributed to this growth in ETFs including (i) demand from retail investors for ETFs; (ii) growing demand for actively managed ETFs; and (iii) positive regulatory developments from the Central Bank of Ireland (CBI) including the ability to establish an ETF share class in a non-ETF fund without having to include an ETF identifier in the name of the fund. This growth in UCITS is set to continue for the foreseeable future, with assets in European ETFs alone forecast to rise?15% annually until 2030.3
AIFs
Globally leading asset managers have extensive AIF ranges domiciled in Ireland, targeting professional investors. Assets of Irish domiciled AIFs amount to approximately €1 trillion, deployed across a variety of investment strategies including hedge, alternatives, private credit, infrastructure, real estate, private equity, venture capital, royalty payments and fund of funds.
The Irish AIF offering is poised for further significant growth:
• ELTIF 2.0: The European Long-Term Investment Fund (ELTIF) was comprehensively overhauled in 2024 and is now an attractive fund structure available for both retail and professional investors, with many unique features attractive to both asset managers and investors.
• AIFMD II: The CBI has committed to harmonising its legacy loan origination rules, a set of requirements applicable to AIFs engaging in direct lending, with those of AIFMD II (the updates to the AIFM Directive required to be implemented across the EU by April 2026 latest). These legacy rules were uniquely applicable to Irish funds. The new AIFMD II regime applies equally to all European funds. The European harmonisation is expected to significantly enhance the attractiveness of Irish fund structures for direct lending.
• AIF Rulebook updates: The CBI has committed to opening a consultation process on updates to its AIF Rulebook before the end of June 2025. The consultation will assess changes to the AIF Rulebook to transpose AIFMD II and possibly other provisions to enhance the product offering for funds investing in private assets.
The recent publication by the CBI of updates to its AIFMD Q&A introduces welcome additional flexibility relating to AIFs’ abilities to guarantee third party debts. AIFs are now permitted to provide guarantees or other forms of security in respect of investments and/or intermediate vehicles, subject to certain requirements being met.
The CBI has recently confirmed both its commitment to developing Ireland’s private assets fund offering and recognition of the importance of alternatives as an increasingly important component of the product toolkit for institutional and retail investors. This continued commitment is welcomed by industry.
Fund Finance in Ireland
Fund finance refers to a specialised area of banking and finance that provides lending solutions to investment funds. Fund finance in Ireland has seen significant growth in recent years, establishing the country as a key player in the global fund finance market. This growth is largely due to Ireland’s robust regulatory framework, favourable tax regime, and its status as a leading domicile for investment funds.
The Irish fund finance market primarily revolves around providing bespoke lending solutions to investment funds, including private equity, real estate, and hedge funds. The most common types of fund finance products include subscription line facilities, NAV (Net Asset Value) facilities, and hybrid facilities. Subscription line facilities, often referred to as capital call facilities, allow funds to bridge the gap between the investment opportunity and the capital call from investors, thus providing liquidity and enhancing the fund’s ability to act swiftly on investments.
NAV facilities, on the other hand, are secured against the fund’s underlying assets and are typically used by more mature funds. These facilities provide additional liquidity and can be utilised for various purposes, including distribution to investors, funding operating expenses, or refinancing existing debt. Hybrid facilities combine elements of both subscription and NAV facilities, offering more flexible financing solutions tailored to the specific needs of funds.
A key development in the fund finance market is the increased use of securitisation technology which plays a crucial role in providing liquidity and managing risk for investment funds and financial institutions.
Securitisation involves the pooling of various types of financial assets, such as loans or receivables, and packaging them into securities that can be sold to investors. This process allows financial institutions to transfer risk and improve liquidity by converting illiquid assets into tradable securities. The primary aim of securitisation is to distribute risk across a broader investor base, thus reducing the concentration of risk on the originating institution’s balance sheet.
In the context of fund finance, securitisation can be utilised by funds to manage their portfolios more effectively. By securitising a portion of their assets, funds can access additional liquidity and diversify their sources of funding. This can be particularly advantageous for funds seeking to optimise their capital structures or manage cash flows more efficiently.
The interplay between fund finance and securitisation is evident in the way they both contribute to the overall efficiency and stability of financial markets. Fund finance provides the necessary liquidity for investment funds to operate effectively, while securitisation offers a mechanism for distributing risk and enhancing liquidity across the financial system.
Looking ahead, the outlook for fund finance in Ireland remains positive and as financial markets globally continue to evolve, Ireland is perfectly positioned to meet the demand for innovative fund finance and securitisation solutions.
Structured Finance and Securitisation
As mentioned above Ireland is the leading jurisdiction in Europe for establishing SPVs with over 3,600 SPVs established in Ireland, supporting over 5,500 jobs in Ireland and contributing over €500 million annually to the Irish economy.4
There are numerous compelling reasons to establish an SPV in Ireland; Ireland is an open economy that is a member of the EU and of the OECD, with strong legal, regulatory and tax laws, providing security, certainty and protection for investors.
Ireland’s favourable securitisation tax regime is a significant attraction for SPV structuring. The Irish “Section 110” regime provides specific advantages for SPVs engaged in financing transactions allowing for tax-neutral treatment of qualifying SPVs, effectively facilitating international investors to invest through an Irish SPV without incurring additional tax burdens that would not apply if they invested directly. Additionally, Ireland’s extensive network of double taxation treaties with over 70 countries ensure that Irish SPVs can benefit from reduced withholding taxes on cross-border transactions, thereby minimising tax leakage and enhancing the tax efficiency of investment structures.
Ireland’s well-developed financial services infrastructure also supports the efficient operation of SPVs. The country houses a wealth of experienced service providers, including legal advisors, accountants, and SPV administration firms. This financial services ecosystem ensures that SPVs are established and managed with the highest standards of professionalism and expertise.
Conclusion
Ireland’s financial services industry is a key driver of economic growth and innovation, employing over 103,500 people across more than 8,800 companies. With additional support from 20,000 professionals in professional services firms, the sector contributes over €6.8 billion annually in tax revenue. The international reach of the Irish investment funds and SPV sectors is a key contributor to this economic performance, positioning Ireland as one of the leading financial services jurisdictions in Europe and cementing international financial services as a “jewel in the crown” of the Irish economy.
1An SPV is a company that is established for a specific narrow purpose, frequently used to isolate financial risks in structured finance, securitisation and aircraft finance transactions.
2EFAMA International Statistical Release, Q4 2024.
3Source: EY European ETF market forecast, March 2024.
4Irish Debt Securities Association Indecon Report on SPVs in Ireland - 2023.
Oisin McClenaghan
With assets under management of Irish domiciled funds hitting €5 trillion in both Undertakings for Collective Investment Schemes (UCITS) and Alternative Investment Funds (AIFs) at the end of 2024, Ireland is widely expected to become the largest fund domicile in Europe in the next few years. Ireland is also the largest domicile in Europe for special purpose vehicles (SPVs)1 with over €1.15 trillion in assets held by Irish SPVs at the end of 2024. It is estimated that the Irish financial services sector directly supports over 56,000 jobs throughout the country.
With assets under management of Irish domiciled funds hitting €5€ trillion in both Undertakings for Collective Investment Schemes (UCITS) and Alternative Investment Funds (AIFs) at the end of 2024, Ireland is widely expected to become the largest fund domicile in Europe in the next few years.
Globally, leading asset managers use Irish investment vehicles as a key prong in the delivery of their investment strategies to a global investor base. The top ten global asset managers with Irish funds, ranked by assets as at June 2024, are BlackRock, Vanguard, PIMCO, Mercer, HSBC, State Street, Goldman Sachs, DWS, Legal & General and Insight.
The top ten global asset managers using Irish SPVs as at December 2024 are Bain Capital, KKR, Morgan Stanley, Carlyle, Fortress Investment, CALC (China Aircraft Leasing Group), BBAM Aviation, BlackRock, Oaktree and Blackstone.
UCITS
Ireland has an unrivalled UCITS offering owing to a number of factors including its robust regulatory framework, depth of service providers and favourable tax regime. Irish domiciled funds experienced a remarkable 22% increase in assets in the past year, of which 58% is attributed to UCITS.
One of the main attractions of a UCITS is the ability to avail of the EEA marketing passport. Ireland is a major domicile for UCITS management companies and a location to distribute UCITS on a global basis. Ireland is seen as the gateway to Europe with Irish funds being distributed to over 90 countries world-wide.
Richard Kelly
In recent times there has also been an exponential growth in exchange traded funds (ETFs), which combine the characteristics of a traditional UCITS but are traded intra-day on exchanges using real time pricing. Ireland has emerged as the leading European domicile for ETFs. At present ETFs domiciled in Ireland account for more than 73% of the total European ETF market.2
One of the key attractions for Ireland as a domicile for ETFs is the comprehensive network of tax treaties. This includes the double tax treaty with the United States which provides for a withholding tax of 15% on U.S. dividends (compared to 30% in other jurisdictions). A number of other factors and trends have also contributed to this growth in ETFs including (i) demand from retail investors for ETFs; (ii) growing demand for actively managed ETFs; and (iii) positive regulatory developments from the Central Bank of Ireland (CBI) including the ability to establish an ETF share class in a non-ETF fund without having to include an ETF identifier in the name of the fund. This growth in UCITS is set to continue for the foreseeable future, with assets in European ETFs alone forecast to rise?15% annually until 2030.3
AIFs
Globally leading asset managers have extensive AIF ranges domiciled in Ireland, targeting professional investors. Assets of Irish domiciled AIFs amount to approximately €1 trillion, deployed across a variety of investment strategies including hedge, alternatives, private credit, infrastructure, real estate, private equity, venture capital, royalty payments and fund of funds.
The Irish AIF offering is poised for further significant growth:
• ELTIF 2.0: The European Long-Term Investment Fund (ELTIF) was comprehensively overhauled in 2024 and is now an attractive fund structure available for both retail and professional investors, with many unique features attractive to both asset managers and investors.
• AIFMD II: The CBI has committed to harmonising its legacy loan origination rules, a set of requirements applicable to AIFs engaging in direct lending, with those of AIFMD II (the updates to the AIFM Directive required to be implemented across the EU by April 2026 latest). These legacy rules were uniquely applicable to Irish funds. The new AIFMD II regime applies equally to all European funds. The European harmonisation is expected to significantly enhance the attractiveness of Irish fund structures for direct lending.
• AIF Rulebook updates: The CBI has committed to opening a consultation process on updates to its AIF Rulebook before the end of June 2025. The consultation will assess changes to the AIF Rulebook to transpose AIFMD II and possibly other provisions to enhance the product offering for funds investing in private assets.
Laura Holtham
The recent publication by the CBI of updates to its AIFMD Q&A introduces welcome additional flexibility relating to AIFs’ abilities to guarantee third party debts. AIFs are now permitted to provide guarantees or other forms of security in respect of investments and/or intermediate vehicles, subject to certain requirements being met.
The CBI has recently confirmed both its commitment to developing Ireland’s private assets fund offering and recognition of the importance of alternatives as an increasingly important component of the product toolkit for institutional and retail investors. This continued commitment is welcomed by industry.
Fund Finance in Ireland
Fund finance refers to a specialised area of banking and finance that provides lending solutions to investment funds. Fund finance in Ireland has seen significant growth in recent years, establishing the country as a key player in the global fund finance market. This growth is largely due to Ireland’s robust regulatory framework, favourable tax regime, and its status as a leading domicile for investment funds.
The Irish fund finance market primarily revolves around providing bespoke lending solutions to investment funds, including private equity, real estate, and hedge funds. The most common types of fund finance products include subscription line facilities, NAV (Net Asset Value) facilities, and hybrid facilities. Subscription line facilities, often referred to as capital call facilities, allow funds to bridge the gap between the investment opportunity and the capital call from investors, thus providing liquidity and enhancing the fund’s ability to act swiftly on investments.
NAV facilities, on the other hand, are secured against the fund’s underlying assets and are typically used by more mature funds. These facilities provide additional liquidity and can be utilised for various purposes, including distribution to investors, funding operating expenses, or refinancing existing debt. Hybrid facilities combine elements of both subscription and NAV facilities, offering more flexible financing solutions tailored to the specific needs of funds.
The interplay between fund finance and securitisation is evident in the way they both contribute to the overall efficiency and stability of financial markets. Fund finance provides the necessary liquidity for investment funds to operate effectively, while securitisation offers a mechanism for distributing risk and enhancing liquidity across the financial system.
A key development in the fund finance market is the increased use of securitisation technology which plays a crucial role in providing liquidity and managing risk for investment funds and financial institutions.
Securitisation involves the pooling of various types of financial assets, such as loans or receivables, and packaging them into securities that can be sold to investors. This process allows financial institutions to transfer risk and improve liquidity by converting illiquid assets into tradable securities. The primary aim of securitisation is to distribute risk across a broader investor base, thus reducing the concentration of risk on the originating institution’s balance sheet.
In the context of fund finance, securitisation can be utilised by funds to manage their portfolios more effectively. By securitising a portion of their assets, funds can access additional liquidity and diversify their sources of funding. This can be particularly advantageous for funds seeking to optimise their capital structures or manage cash flows more efficiently.
The interplay between fund finance and securitisation is evident in the way they both contribute to the overall efficiency and stability of financial markets. Fund finance provides the necessary liquidity for investment funds to operate effectively, while securitisation offers a mechanism for distributing risk and enhancing liquidity across the financial system.
Jennifer Dobbyn
Looking ahead, the outlook for fund finance in Ireland remains positive and as financial markets globally continue to evolve, Ireland is perfectly positioned to meet the demand for innovative fund finance and securitisation solutions.
Structured Finance and Securitisation
As mentioned above Ireland is the leading jurisdiction in Europe for establishing SPVs with over 3,600 SPVs established in Ireland, supporting over 5,500 jobs in Ireland and contributing over €500 million annually to the Irish economy.4
There are numerous compelling reasons to establish an SPV in Ireland; Ireland is an open economy that is a member of the EU and of the OECD, with strong legal, regulatory and tax laws, providing security, certainty and protection for investors.
Ireland’s favourable securitisation tax regime is a significant attraction for SPV structuring. The Irish “Section 110” regime provides specific advantages for SPVs engaged in financing transactions allowing for tax-neutral treatment of qualifying SPVs, effectively facilitating international investors to invest through an Irish SPV without incurring additional tax burdens that would not apply if they invested directly. Additionally, Ireland’s extensive network of double taxation treaties with over 70 countries ensure that Irish SPVs can benefit from reduced withholding taxes on cross-border transactions, thereby minimising tax leakage and enhancing the tax efficiency of investment structures.
Ireland’s well-developed financial services infrastructure also supports the efficient operation of SPVs. The country houses a wealth of experienced service providers, including legal advisors, accountants, and SPV administration firms. This financial services ecosystem ensures that SPVs are established and managed with the highest standards of professionalism and expertise.
Conclusion
Ireland’s financial services industry is a key driver of economic growth and innovation, employing over 103,500 people across more than 8,800 companies. With additional support from 20,000 professionals in professional services firms, the sector contributes over €6.8 billion annually in tax revenue. The international reach of the Irish investment funds and SPV sectors is a key contributor to this economic performance, positioning Ireland as one of the leading financial services jurisdictions in Europe and cementing international financial services as a “jewel in the crown” of the Irish economy.
1An SPV is a company that is established for a specific narrow purpose, frequently used to isolate financial risks in structured finance, securitisation and aircraft finance transactions.
2EFAMA International Statistical Release, Q4 2024.
3Source: EY European ETF market forecast, March 2024.
4Irish Debt Securities Association Indecon Report on SPVs in Ireland - 2023.
Oisin McClenaghan is a partner and heads the Investment Funds team at Ogier in Dublin. Oisin practices financial services law and advises many of the globally leading financial institutions, asset managers and investment banks on the structuring, establishment, marketing and sale of Irish domiciled investment vehicles (including UCITS, AIFs, ICAVs, CCFs, ILPs, unit trusts).
Richard Kelly is a Partner in Ogier’s Banking and Finance team and leads Ogier’s Structured Finance and Capital Markets services in Ireland. Richard advises international and domestic clients on all aspects of debt capital markets transactions, with a specialisation in structured finance, CLO, ABS and other securitisation products as well as prime brokerage services (including derivatives, repos, securities lending and crypto trading).
Laura Holtham is a Partner in the Banking and Finance team in Ogier’s Ireland office. She advises financial institutions, alternative lenders, investors and borrowers on a wide range of local and international transactions. She has particular expertise in real estate finance, fund finance, structured finance and secured lending.
Jennifer Dobbyn is a Partner in the Investment Funds team at Ogier in Dublin. Jennifer advises asset managers, investment firms and financial institutions on the structuring, establishment and ongoing operation of Irish domiciled investment vehicles across a broad range of assets classes.
Richard Kelly is a Partner in Ogier’s Banking and Finance team and leads Ogier’s Structured Finance and Capital Markets services in Ireland. Richard advises international and domestic clients on all aspects of debt capital markets transactions, with a specialisation in structured finance, CLO, ABS and other securitisation products as well as prime brokerage services (including derivatives, repos, securities lending and crypto trading).
Laura Holtham is a Partner in the Banking and Finance team in Ogier’s Ireland office. She advises financial institutions, alternative lenders, investors and borrowers on a wide range of local and international transactions. She has particular expertise in real estate finance, fund finance, structured finance and secured lending.
Jennifer Dobbyn is a Partner in the Investment Funds team at Ogier in Dublin. Jennifer advises asset managers, investment firms and financial institutions on the structuring, establishment and ongoing operation of Irish domiciled investment vehicles across a broad range of assets classes.