Dublin-based private equity firm Erisbeg has raised €175m for its second fund dedicated to Irish SMEs, securing commitments from both domestic and international investors, according to a report by the Irish Times.

The raise, which follows an initial close of €100m in December, drew renewed support from AIB, Bank of Ireland, and Ireland Strategic Investment Fund (ISIF), alongside new commitments from investors in Norway, Belgium, and the Netherlands.

Erisbeg, founded by Alan Kerr, Thomas Davy, Robert Burns, and Andrew Murphy, focuses on business services companies in Ireland with ambitions for international expansion. The firm typically partners with management and shareholders to drive growth organically and through acquisitions.

Its first €110m fund backed six platform companies, completing 27 bolt-on acquisitions. Erisbeg exited Medray in 2024 in a €60m sale to LDC, which paved the way for its latest fundraise.

Fund II is already active, with investments in EMR Integrated Solutions, a provider of telecoms and cybersecurity services for critical infrastructure, and CHM Group, a traffic management solutions business.

Alan Kerr, co-founder of Erisbeg, said: “This fund raise took shape in a matter of months, thanks to the support of our Irish and international institutional investors. There was support from investors for a larger fund, but we felt it was right to close it out now at a size we believe is perfect for the market opportunity as we see it today.”

The close underscores growing institutional appetite for SME-focused private equity in Ireland, with Erisbeg positioning itself as a leading investor in the sector.

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