Mercia Asset Management upbeat on new fund raises

2nd May 2023 12:32

(Sharecast News) - Mercia Asset Management announced on Tuesday that its existing managed funds had continued to attract new investments, while its new fund raises had been successful, totalling around £80m.

The AIM-traded firm said it currently manages assets worth about £1.4bn.

It said the inflows into its managed funds included the Frontier Development Capital (FDC) Debt LP fund raising an additional £30m following its acquisition by Mercia.

The Northern Venture Capital Trusts meanwhile raised £18m, while Mercia's latest knowledge-intensive Impact Enterprise Investment Scheme fund raised £13.6m.

Its Northern Powerhouse Investment Fund, managed by Mercia, received an additional equity allocation of £10.3m from the British Business Bank; and the Midlands Engine Investment Proof-of-Concept Fund, also managed by Mercia, received an additional equity allocation of £8.5m from the British Business Bank.

As at 31 March, Mercia held unrestricted cash worth £37.8m on its balance sheet, and had no debt.

Additionally, the company said it had "substantial" liquidity within its managed funds to support both existing and new investee companies.

"Two things stand out from these new inflows - our ability to raise additional funds from across our different pools of capital, and our ability to do this during a difficult fund raising period in the UK," said chief executive officer Mark Payton.

"Together, these new inflows highlight the strength of the Mercia model, and the investor confidence we have built through our investment track record."

Dr Payton said it was also "pleasing" to see FDC immediately making a positive impact as part of the group, following its successful integration.

"As a debt-free group, we are in a robust position from which to support our existing portfolio companies and identify new opportunities, as Mercia builds on its position as a leading, regionally based, partner of choice for ambitious entrepreneurs."

At 1006 BST, shares in Mercia Asset Management were up 2.04% at 26.02p.

Reporting by Josh White for Sharecast.com.