With no precedent for delivering 4 per cent returns and economic benefit in a small economy, the strategic investment fund will play its strengths in evolving a strategy to invest a further €5.6 billion ($6.1 billion) across the capital structure and for the long term.

“Ireland is a small proportion of the global economy so we only have a small opportunity set,” says Eugene O’Callaghan, articulating the biggest challenge he faces shaping investment strategy at Ireland’s €7.6 billion ($8.3 billion) strategic investment fund (ISIF).

So far only a third of the fund has been invested in Ireland, yet the aim is for it all to be put to work in a duel mandate that brings commercial returns of 4 per cent alongside Irish economic…