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Mercia Asset Management [2024]
Finance and Risk Capital
Impact for scaleups
£1.82 bn
assets under management
58
UK companies backed
101
Fundraisings
£1.55m
Average investment
Key sectors
Mercia became an AIM listed company at the London Stock Exchange in 2014. It provides capital across its four asset classes of venture, private equity, debt and proprietary capital – what it describes as the group’s ‘complete connected capital’. It initially nurtures businesses via its third-party funds under management, before over time providing further funding to the most promising companies by deploying direct investment follow-on capital from its own balance sheet.
Mercia only invests in domestic UK businesses with relatively modest capital needs (typically less than £30m in their entire growth journey to exit), aiming to back ambitious business owners who are initially looking for between £250,000 and £10m of investment.
In 2024, Mercia Asset Management achieved significant milestones, growing its total assets under management (AuM) to £1.82 billion, a notable increase from £1.44 billion in 2023. The firm secured £562 million in fund inflows during the year, its highest ever, supported by new mandates from the British Business Bank and other initiatives, such as expanding the Northern Powerhouse and Midlands Engine funds.
In terms of performance, Mercia generated £30.4 million in revenue for FY24, up from £25.9 million in FY23, and maintained a strong cash balance of £46.9 million. Over the first half of FY24 alone, Mercia invested £111 million into 83 businesses, reflecting its ongoing support for regional growth companies. The firm also realized £52 million from its equity portfolios, with the sale of its investment in nDreams being a standout, resulting in a 2.7x return on invested capital
The Group’s overarching strategy is to make a positive impact through investment in purpose-led companies. It has an investment track record in the life sciences, digital and deeptech sectors, with investments largely outside of London. The firm has a physical presence in cities including Birmingham, Manchester, Sheffield, Leeds, Bristol, Newcastle and London, ensuring that the requisite investment team is within two hours from prospective and existing investments. Mercia’s investment network is formed from close contacts within a variety of institutions ranging from universities, to the corporate finance community, to non-executive groups and their operational and sector partners.
Its three Northern VCTs alongside its EIS and regional funds operate in the pre-Series A space. Notable scaleups that it has supported include social-impact platform Social Value Portal and audio technology firm Warwick Acoustics.
Mercia provides a range of support for its portfolio companies. It recently launched a fully funded program called ‘Rise & Thrive: Navigating Investment as Women Entrepreneurs’ that will offer a series of four half-day workshops to 80 female entrepreneurs.
