ISIF backs new climate fund with EUR €140m cornerstone

Ireland Strategic Investment Fund (ISIF) has committed up to €140m as a cornerstone investor in a new climate action infrastructure fund managed by TirNua Capital Partners, as the state-backed investor steps up activity under its expanded climate programme.

The TirNua fund has secured €340m in commitments so far, including ISIF's allocation. It will invest mainly in energy-transition infrastructure in Ireland, with at least 60% of investments expected to be in the domestic market.

New manager

TirNua is an independent, employee-owned private markets investment manager formed by Irish Life Investment Managers and Northleaf Capital Partners. Northleaf operates globally across private equity, private credit and infrastructure.

The fund will invest across energy-transition themes in the Irish economy, including renewable power generation, battery energy storage, data centre decarbonisation and offshore wind support services.

Other target areas include building efficiency upgrades, biogas and green transport. The fund is designed to provide long-term capital for infrastructure assets, which are often financed through private markets rather than public listings.

ISIF programme

ISIF is part of the National Treasury Management Agency. It has set out plans for a €2bn climate action investment programme, after reaching its earlier target of €1bn in climate-related investments in 2025, ahead of schedule.

ISIF aims to deploy a further €1bn in climate action investments from 2025 to 2029. The commitment to TirNua's fund sits within that plan and reflects ISIF's approach of investing through specialist managers as well as directly.

The cornerstone commitment provides early scale for the TirNua fund. In private markets fundraising, an anchor investor can accelerate subsequent fundraising and signal confidence in a manager's strategy. The expectation that at least 60% of the fund will be invested in Ireland points to a domestic tilt despite the involvement of an international partner.

Policy context

The investment comes as Ireland seeks to expand renewable generation and grid infrastructure while meeting rising electricity demand. Data centres are central to that debate, given their energy use and concentration around Dublin and other hubs.

Policy and investment attention has also increased on offshore wind. Support services typically include ports, vessels and maintenance operations. Energy storage has taken a higher profile as intermittent generation grows in the electricity system.

Simon Harris, Tánaiste and Minister for Finance, said the commitment aligned with government priorities on climate and infrastructure.

"I very much welcome today's announcement by ISIF of €140 million - an investment that will help drive progress in the crucial area of climate action," said Simon Harris, Tánaiste and Minister for Finance, Ireland.

Fund focus

ISIF interim director Rebekah Brady said the commitment reflects how ISIF allocates capital to climate through a mix of platforms and managers.

"This commitment to TirNua's fund is a strong example of how ISIF's climate investment programme is supporting the Government's Climate Action Plan - backing both new and existing fund managers, platforms and businesses to enable infrastructure to support Ireland's energy transition," said Rebekah Brady, Interim Director, ISIF.

Brady also highlighted the role of pension funds and other institutions in financing infrastructure. Many seek long-dated assets that match liabilities, and private markets vehicles are a common route to gain exposure to infrastructure projects.

"TirNua is a pioneering Irish platform which will seek to catalyse investment from pension funds and other investors into the energy transition in Ireland, driven by the ILIM partnership," said Brady.

Investor interest

TirNua Chief Executive David O'Brien said the platform gives investors a way to allocate long-term capital to lower-carbon projects.

"As a first-of-its-kind private markets platform committed to Ireland's transition to a lower carbon economy, TirNua represents an exciting new way for investors to channel long-term capital into the projects that will positively shape Ireland's future. We are especially proud to have ISIF as a cornerstone partner on this journey," said David O'Brien, TirNua CEO.

The fund's commitments stand at €340m, with scope for further fundraising as investment opportunities develop across the targeted sectors in Ireland.