Mercia Asset Management
PLC
("Mercia", the "Company" or
the "Group")
Three new major British
Business Bank fund management contracts secured
Mercia Asset Management PLC (AIM:
MERC), the proactive, regionally focused specialist asset manager
with c.£1.5billion of assets under management, is pleased to
announce that it has been appointed to manage three of the British
Business Bank's ("BBB") new Midlands Engine Investment Fund II
("MEIF II") mandates, representing a total of £207.0million in new
funds under management ("FuM") as follows:
·
MEIF II - Equity ESEM LP - £83.0million to be
invested in the East Midlands and South East Midlands, managed by
Mercia Regional Ventures;
·
MEIF II - Equity WM LP - £80.0million to be
invested in the West Midlands, managed by Mercia Regional Ventures;
and
·
MEIF II - Debt WM LP - £44.0million to be lent in
the West Midlands, managed by Frontier Development Capital, a
wholly owned subsidiary of Mercia.
These three new fund mandates, which
have been awarded following a highly competitive procurement
process, represent important strategic progress for Mercia, with
scaling its profitable third-party fund management operations a key
'Mercia 20:20' objective.
The funds will be managed and
deployed by the Group's staff based largely across
its three existing Midlands offices; Birmingham,
Nottingham and Henley-in-Arden. They will be focused on supporting
businesses across the entire East Midlands, South East Midlands and
West Midlands, where the Group has already established a strong
track record in supporting SMEs.
BBB is expected to announce the
award of new equity and debt fund mandates under its 'Nations and
Regions Investments' Northern Powerhouse Investment Fund II
initiative, towards the end of March 2024.
Dr
Mark Payton, CEO of Mercia Asset Management PLC,
said: "We are really delighted that,
following a highly competitive procurement process, the Group has
been selected by the British Business Bank to manage three new
Midlands Engine Investment Fund II mandates, totalling
£207.0million. This is a strong vote of confidence in our
investment track-record and staff, with the ability through our
established regional footprint and networks to successfully deploy
the capital that is needed to support exciting regional growth
companies.
"We are passionate about investing
in the UK's regions to support the next generation of
high-potential businesses and by growing our equity and debt funds
under management, we can do this at greater scale and pace. It is
also pleasing that Frontier Development Capital, acquired by Mercia
in December 2022, has been awarded its first Midlands Engine
Investment Fund mandate."
- Ends -
For
further information, please contact:
Mercia Asset Management PLC
Mark Payton, Chief Executive
Officer
Martin Glanfield, Chief Financial
Officer
www.mercia.co.uk
|
+44 (0)330
223 1430
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Canaccord Genuity Limited (NOMAD and Joint
Broker)
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+44 (0)20
7523 8000
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Simon Bridges, Emma
Gabriel
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Singer Capital Markets (Joint Broker)
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+44 (0)20
7496 3000
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Harry Gooden, James Moat
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FTI
Consulting
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+44
(0)20 3727 1051
|
Tom Blackwell, Jenny Boyd
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mercia@fticonsulting.com
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About Mercia Asset Management PLC
Mercia is a proactive, specialist
asset manager focused on supporting regional SMEs to achieve their
growth aspirations. Mercia provides capital across its four asset
classes of venture, private equity, debt and proprietary capital:
the Group's 'Complete Connected Capital'. The Group initially
nurtures businesses via its third-party funds under management,
then over time Mercia can provide further funding to the most
promising companies, by deploying direct investment follow-on
capital from its own balance sheet.
The Group has a strong UK footprint
through its regional offices, university partnerships and extensive
personal networks, providing it with access to high-quality deal
flow.
Mercia Asset Management PLC is
quoted on AIM with the EPIC "MERC".
About the Midlands Engine Investment Fund II
Operated by the British Business
Bank, the Midlands Engine Investment Fund II provides debt and
equity funding to smaller businesses. The Midlands Engine
Investment Fund II will offer a range of commercial finance options
with smaller loans from £25,000 to £100,000, debt finance from
£100,000 to £2million and equity investment up to
£5million.
The Fund works alongside various
support and funding organisations and local intermediaries such as
accountants, other fund managers and banks, to support the
Midlands' smaller businesses at all stages of their
development.
The funds in which the Midlands
Engine Investment Fund II invests are open to businesses with
material operations, or planning to open material operations, in
all areas of the Midlands. Supported by Nations and Regions
Investments Limited, a subsidiary of British Business Bank plc, the
Bank is a development bank wholly owned by HM Government. Neither
Nations and Regions Investments Limited nor British Business Bank
plc are authorised or regulated by the Prudential Regulation
Authority (PRA) or the Financial Conduct Authority
(FCA).
www.midlandsengineinvestmentfund.co.uk