Fuelling growth: Private equity and debt financing in Northern Ireland’s business landscape

Richard Armstrong and Stuart Mansfield, Partners at Arthur Cox, highlight how Northern Ireland’s business environment is experiencing a significant transformation, with private equity and debt financing playing increasingly complementary roles in driving growth, innovation, and inward investment. 

Northern Ireland’s business environment is experiencing a significant transformation, with private equity (PE) and debt financing playing increasingly complementary roles in driving growth, innovation, and inward investment.

According to a recent Experian M&A report, 2024 saw a 23% rise in private equity transactions in Northern Ireland - a clear signal of the region’s growing appeal to investors. 

This uptick reflects a burgeoning pipeline of investor-ready businesses, drawing interest from Great Britain, Ireland, and international markets. The result is a virtuous cycle of confidence and capital that is reshaping Northern Ireland’s economic trajectory.

At its core, private equity offers more than capital. PE investors frequently deliver strategic insight, operational expertise, and valuable networks to help businesses scale and succeed. They also bring a clear focus on long-term value creation and, when appropriate, provide transparent exit strategies.

Arthur Cox has been at the heart of this evolution, advising on a series of high-profile investments. Among them is the US-based WOC Group’s investment in the Ballykeel Beg Group to develop Dunluce Lodge, a luxury resort in Portrush, Northern Ireland. Alongside advising Titanic Distillers on a £5 million equity investment from Whiterock. Based in Belfast’s historic Thompson Dock, the distillery plans to use the funding to expand internationally, scale its sales operations, and grow distribution across Europe and the US.

While equity plays a vital role in long-term strategic growth, debt finance remains a fundamental funding pillar - offering businesses access to capital without ownership dilution. From term loans and overdrafts to asset finance and credit facilities, debt financing can be tailored to suit varying needs, often with structured repayment plans and potential tax advantages.

Traditional banks remain key lenders, particularly for established businesses with robust trading histories. However, for early-stage or high-growth companies that may fall outside standard lending criteria, alternative and angel lenders are becoming increasingly attractive. 

The trend towards combining equity and debt is also gaining pace. A hybrid funding approach allows companies to balance immediate capital needs with longer-term strategic ambitions. 

From infrastructure and manufacturing to hospitality and waste management, businesses across Northern Ireland are adopting more sophisticated approaches to funding. The convergence of private equity and debt finance reflects a maturing market - one that values flexibility, strategic growth, and tailored solutions.
 

Authored by Richard Armstrong and Stuart Mansfield, 
Partners at Arthur Cox

For more information, contact Arthur Cox at +44 28 9023 0007 or email [email protected].