Róisín Shortall (Dublin North West, Social Democrats)
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199. To ask the Minister for Finance if his attention has been drawn to the sale of a company (details supplied); the implications of the sale for the State's investment through the Irish Strategic Investment Fund; and if he will make a statement on the matter. [42512/21]

Róisín Shortall (Dublin North West, Social Democrats)
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200. To ask the Minister for Finance if financial safeguards were put in place to protect the State's investment in a company (details supplied); the estimated loss to the State on its investment to date; and if he will make a statement on the matter. [42513/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 199 and 200 together.

The NTMA has informed me that ISIF has a shareholding in Genuity Science and that three operating subsidiaries of Genuity Science have been acquired by HiberCell in an all-stock transaction. ISIF continues to remain a shareholder in Genuity Science and as such is now an indirect shareholder in HiberCell.

I am also informed that the transaction with Hibercell was assessed as representing the best opportunity at this time to maximise value for Genuity Science shareholders in the future and was considered as giving the best chance to maintain ongoing Genuity operations including in Ireland, albeit now under Hibercell. ISIF has invested €66m in Genuity Science to date, alongside a range of sophisticated private investors on commercial terms which were acceptable to such investors and ISIF. Consistent with the approach it takes on all investments, ISIF conducted an appropriate due diligence exercise prior to making its investment. I understand that for reasons of commercial sensitivity ISIF does not comment on the carrying value of its investments from time to time but I note that ISIF has publicly stated that Genuity’s valuation has been negatively impacted by the global pandemic and its exposure to geopolitical events.

ISIF’s portfolio is diversified, comprising investments in a range of asset classes across the spectrum of risk that are consistent with its mandate of achieving economic impact while earning a commercial return. High-risk investments in the life sciences and tech sectors comprise a very small percentage of the overall portfolio (less than 3%). Investments of this nature can be volatile and are often early-stage but have the ability to deliver significant return potential. ISIF has a number of direct investments that have and continue to deliver significant gains, however ISIF also expects that there will inevitably be some individual investments where it will recover less than the total invested. Notwithstanding the risks inherent in these investments, since ISIF’s inception, overall high-risk investments have delivered positive returns of circa 18% at H1 2021. Overall, the returns on the total portfolio of €9.2bn since inception exceed €2.2bn, with as of H1 2021 generating returns of 5.2% year to date. The fund has generated annual returns of 4.1% pa since inception.