That’s according to John Bowe, head of corporate finance at Forvis Mazars, who sees healthcare, data centre construction and professional services as the likely big winners from the next wave of Irish private equity investment.
But, he warned, the Government also needs to consider increasing its proposed €250m Seed and Venture Capital Scheme to help combat a squeeze on venture capital for smaller Irish start-ups.
A report last week from the Irish Venture Capital Association revealed that venture capital funding fell in 2025 – for the first time in seven years.
“We need to be building the next wave of companies. We have a great entrepreneurial base, but we need to continue to harvest that, so that if you roll the clock forward 10 years we will have those companies coming through.”
Bowes said it was crucial that the country has “an environment that can support that funding, even if the market slows down”.
But, he added, there is a big opportunity for the Irish private equity market.
It has grown, but it is becoming more important in helping domestic companies scale in places where there may be more caution from international PE investors.
“We have a pretty strong domestic private equity pool of capital now, who are fully funded to do transactions to back Irish business owners,” said Bowe.
“Irish private equity is really only 10 or 15 years old, but most of them now have raised their second or third funds and they are looking to use the money.”
But despite Bowe’s optimism, private equity is at something of a crossroads. PE activity declined by 26pc from “exceptional levels” in 2024 but remained “structurally strong”, according to a report last month by Renatus.
?Global uncertainty is likely to have played its part. While transaction volumes declined, deal activity “continues to sit well above pre-2024 norms”, though it noted that international PE investors had adopted a more selective approach.
Government must help combat VC squeeze on smaller Irish start-ups
Despite trade volatility and geopolitical tensions, US funds are still investing in Ireland “when it is the right deal”.
One of the larger deals last year was TA Associates taking a major stake in Clanwilliam Group, which was a really significant transaction, he said.
International funds still dominate large deals but Irish firms are increasingly active in mid-market and SME investments.
Significant Irish-based private equity deals included Renatus’ investment in Strata Financial. Waterland’s acquisition of Cruinn Diagnostics and Quintas Capital’s investment in the Petal Group.
“All of these funds now have been through their first fund. They’ve invested and exited, and that education is now there in an Irish context, which is important.”
“I’m at this a while now and there used to be a fear of private equity in terms of what it all meant, but I think those conversations with founders have become a lot easier now.”
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