3 DECEMBER 2019 
   Proposed change in management arrangements 
   NVM Private Equity LLP ("NVM") has today announced the conditional sale 
of its venture capital trust ("VCT") fund management business 
(predominantly comprising three VCT fund management and advisory 
contracts relating to the Company, Northern Venture Trust PLC and 
Northern 3 VCT PLC (the "Northern VCTs")), to a subsidiary of Mercia 
Asset Management PLC (AIM: MERC) ("Mercia"), a proactive, regionally 
focused specialist asset manager (the "Acquisition"). 
   The Company has consented to the novation of its existing investment 
management agreement with NVM to Mercia, which is expected to become 
effective no later than 27 December 2019.  No material changes are being 
made to the terms of the investment management agreement. 
   The NVM VCT management team, led by partners Tim Levett and Charlie 
Winward, will transfer to Mercia and will constitute a new VCT division 
within the Mercia group.  A comprehensive agreement has been entered 
into between NVM and Mercia to ensure the smooth transition and 
continuation of the management and administration of the Northern VCTs. 
NVM will continue to provide accounting, company secretarial and 
administration services to all three Northern VCTs until at least 
September 2021. 
   Mercia is an AIM quoted asset management group, focused on making early 
stage investments in the UK regions, both from managed funds and 
directly from its own balance sheet. Mercia has around GBP500 million of 
assets under management and the acquisition of the management of the 
Northern VCTs will increase Mercia's total assets under management by 
over 50% to approximately GBP770 million. 
   After careful consideration and extensive due diligence, the directors 
of the Company ("the "Board") believe that the change in management 
arrangements is a positive development for the Company and that it comes 
at the right time in the continuing evolution of the VCT sector.  Mercia 
and NVM believe that the combination of NVM's long established position 
as a successful investor and Mercia's venture credentials will create 
one of the leading regionally based UK venture fund management groups. 
The Board has identified that the specific benefits to the Company will 
   -- Deal flow - Mercia has the ability to introduce and complete many more 
      deals each year and has a portfolio of over 300 companies.  These are 
      sourced both from regional networks and from universities. 
   -- Enhanced regional presence and resource - Mercia has eight regional 
      offices and 85 employees, with particular strengths in the Midlands, the 
      North of England and Scotland.  Mercia has invested heavily in building 
      commercial expertise in a value added team which will be deployed both to 
      help the Company's existing portfolio companies and to identify new 
   -- Flexibility - Mercia's management of non-VCT funds and its ability to 
      make investments from its own balance sheet will facilitate non-VCT 
      qualifying follow-on investment in existing portfolio companies where the 
      Company is prevented by the VCT rules from investing further, opening up 
      both acquisitions and management change investment which might not 
      otherwise have been possible. 
   -- Continuity - Tim Levett and Charlie Winward will continue to lead the VCT 
      team and the Board is confident that the team will continue to build the 
      Company's portfolio.  Mercia's investment process is very similar to that 
      developed over many years by NVM, and the procedure for undertaking due 
      diligence and approving new investments will be substantially the same as 
   The Board considers that the change in management arrangements is a 
positive development for the Company, and looks forward to working with 
Mercia to achieve a good investment performance for shareholders in the 
   Tim Levett, Chairman, NVM Private Equity, Tel: 0118 951 7000 
   James Bryce, Company Secretary, Northern 2 VCT, Tel: 0191 244 6000 
   Neither the contents of the NVM Private Equity LLP website nor the 
contents of any website accessible from hyperlinks on the NVM Private 
Equity LLP website (or any other website) is incorporated into, or forms 
part of, this announcement. 

(END) Dow Jones Newswires

December 03, 2019 02:06 ET (07:06 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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