Northern 2 VCT PLC Proposed Change In Management Arrangements
03 Diciembre 2019 - 01:06AM
UK Regulatory
TIDMNTV
3 DECEMBER 2019
NORTHERN 2 VCT PLC (THE "COMPANY")
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
include:
-- 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
opportunities.
-- 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
before.
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
future.
Tim Levett, Chairman, NVM Private Equity, Tel: 0118 951 7000
James Bryce, Company Secretary, Northern 2 VCT, Tel: 0191 244 6000
Website:
https://www.globenewswire.com/Tracker?data=nzczQB2b6CVBWqwV-OF2p1hInJk3o4J8F6W7Nlu5Qs3GnerHSdmqW9VQpEMipMQl2u7Fscc_AQ6oeymb3DKljA==
www.nvm.co.uk
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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