Belfast Telegraph

US billionaire Ross signs up to new Irish investment deal

By Donal O'Donovan

Wilbur Ross has signed a new Irish investment deal with financiers Cardinal Capital Group.

The US billionaire's firm and Irish investment house Cardinal have signed a joint venture which aims to raise €400m (£322m) for property investments.

The new fund will be open to new investors as well as those who backed Wilbur Ross previously on deals including his successful Bank of Ireland play.

It will make so called "mezzanine finance" investments in commercial and residential property schemes here.

Mezzanine finance is a relatively risky form of investments that bridges the gap between loans and pure equity – a mezzanine provider typical charges interest but unlike traditional lenders is well back in the queue to be repaid if a deal fails.

Cardinal Capital Group was set up by finance veterans Nick Corcoran and Nigel McDermott to invest in mainly financial assets. The firm was involved in putting together the €1.1bn (£0.9m) 2011 deal when Wilbur Ross first invested in Bank of Ireland, and missed out in bid to buy EBS. Mr Corcoran was previously founder of Zurich Capital Markets (ZCM), one of the world's leading hedge fund asset managers.

Belfast Telegraph