New British Business Bank contracts

Mercia Asset Management PLC

29 February 2024

 

RNS	29 February 2024

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."

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For further information, please contact:

Mercia Asset Management PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer www.mercia.co.uk    [phone] Canaccord Genuity Limited (NOMAD and Joint Broker) [phone] Simon Bridges, Emma Gabriel Singer Capital Markets (Joint Broker) [phone] Harry Gooden, James Moat FTI Consulting           [phone] Tom Blackwell, Jenny Boyd [e-mail]

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 

 

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