This announcement comes following today’s confirmation that EU approval has been obtained by the Government for the EII Scheme.  The new scheme transforms the Business Expansion Scheme (BES) by significantly widening the scope of companies that can raise EII Scheme funding.  In addition, companies can now raise up to €10 million (previously €2 million) under the scheme and the amount that can be raised in any 12 month period has been increased to €2.5 million (previously €1.5 million).

The Davy BDO joint venture, BES Management Ltd., is Ireland’s longest running BES Manager having launched their offering in 1995 and having invested 18 BES funds over the last 16 years. BES Management Ltd. is regulated by the Central Bank of Ireland.

Speaking following the announcement of the EU approval for the new EII Scheme, Sinead Heaney, Partner at BDO commented:

“We welcome today’s announcement, which is great news for Irish SME’s. The Employment and Investment Incentive Scheme has taken the benefits of BES and widened them to the benefit of many more Irish Businesses which previously did not qualify or had previously reached the €2m limit.  It’s wider remit and increased investment limits are widely welcomed at a time when funding from traditional sources is limited. The scheme is seen as a vital source of funding for SME’s and many companies are looking towards EII funding to finance their growth strategies."

Sinead Heaney continued:

"I am also pleased to announce today our intention to launch The Davy EII Tax Relief Fund on 30th November next.  Over the last 16 years we have invested €125 million in over 140 companies. Our Funds are managed and the investments are monitored in a ‘hands-on’ way by a full-time and experienced management team, an approach that appeals to both companies and investors alike”. Over the coming weeks we will be targeting companies to assess their suitability for funding and would encourage any companies meeting the qualifying criteria to consider the benefits that equity funding of this nature could bring to their business."

Speaking of the incentive to invest, Richard Kinsella, Director, Davy Private Clients, said:

‘"The new scheme offers investors an attractive tax relief of up to 41%.  In addition, The Davy EII Tax Relief Fund offers investors the opportunity to invest in a managed and diversified fund."

-ends-

For further details contact BDO on 01 470 0455 or see www.bes.ie