REG - Mercia Asset Mgt PLC - Mercia secures two further BBB contracts

Mercia Asset ManagementAnnouncement

21/03/2024 07:00

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RNS Number : 6818H  Mercia Asset Management PLC  21 March 2024

 RNS  21 March 2024

 

Mercia Asset Management PLC

 

("Mercia", the "Company" or the "Group")

 

Mercia secures two further major British Business Bank fund management
contracts

 

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 two further new
British Business Bank ("BBB") fund mandates under its 'Nations and Regions
Investments' Northern Powerhouse Investment Fund II initiative ("NPIF II").

 

The two new NPIF II mandates, representing a total of £153.0million in new
funds under management, are as follows:

 

·    NPIF II - Equity YH LP - £100.0million to be invested in Yorkshire
and the Humber, managed by Mercia Regional Ventures; and

·    NPIF II - Debt YH LP - £53.0million to be lent in Yorkshire and the
Humber, managed by Mercia Business Loans.

 

As with the £207.0million of new BBB fund mandates announced on 29 February
2024, these two new mandates have also been awarded following a highly
competitive selection process.

 

The funds will be managed and deployed by the Group's staff based largely
across three of its existing offices in Sheffield, Leeds and Hull. They will
be focused on supporting businesses across the entire Yorkshire and the Humber
region, where the Group has already established a strong track record in
supporting SMEs.

 

The five new BBB mandate awards represent a combined £360.0million of new
Funds under Management and Mercia anticipates that the incremental annual
revenues, net of revenue reductions as Mercia's existing BBB mandates enter
their five-year realisation phase, will be c.£4million.

 

Dr Mark Payton, CEO of Mercia Asset Management PLC, said: "As with last
month's announcement that the Group had been selected by the British Business
Bank to manage three new mandates totalling £207.0million, we are delighted
that, following an equally competitive selection process, the Group has also
now been selected to manage two new Northern Powerhouse II mandates, totalling
an additional £153.0million.

 

"We recognise and thank the British Business Bank for the trust placed in all
of us at Mercia. This is a further strong vote of confidence in our investment
track-record, which is built on our ability to successfully deploy the capital
that is really needed to support exciting growth companies through our
established regional footprints and networks.

 

"The combined £360.0million of new fund mandate awards is anticipated to
result in c.£4million of net incremental revenue in our next financial year,
supporting our naturally evolving strategic focus of growing our profitable
third party fund management operations."

 

- Ends -

 

For further information, please contact:

 

 Mercia Asset Management PLC                          +44 (0)330 223 1430

 Mark Payton, Chief Executive Officer

 Martin Glanfield, Chief Financial Officer

 www.mercia.co.uk (http://www.mercia.co.uk/)

 Canaccord Genuity Limited (NOMAD and Joint Broker)   +44 (0)20 7523 8000
 Simon Bridges, Emma Gabriel

 Singer Capital Markets (Joint Broker)                +44 (0)20 7496 3000
 Harry Gooden, James Moat

 FTI Consulting                                       +44 (0)20 3727 1051
 Tom Blackwell, Jenny Boyd
 mercia@fticonsulting.com

 

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 Northern Powerhouse Investment Fund II

Operated by the British Business Bank, the Northern Powerhouse Investment Fund
II provides a mix of debt and equity funding. The Northern Powerhouse
Investment Fund II will offer a range of commercial finance options with
smaller loans from £25k to £100k, debt finance from £100k to £2m and
equity investment up to £5 million.

The Fund works alongside the Combined Authorities, Local Enterprise
Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as
accountants, fund managers and banks, to support the North's smaller
businesses at all stages of their development.

The funds in which the Northern Powerhouse Investment Fund II invests are open
to businesses with material operations, or planning to open material
operations, in all areas of the North.  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.northernpowerhouseinvestmentfund.co.uk
(http://www.northernpowerhouseinvestmentfund.co.uk)

 

 

 

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