REG - Mercia Asset Mgt PLC - New British Business Bank contracts

Mercia Asset ManagementAnnouncement

29/02/2024 07:00

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RNS Number : 8684E  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."

 

 

- 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 (mailto: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 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
(http://www.midlandsengineinvestmentfund.co.uk)

 

 

 

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