Mercia Asset Management PLC (AIM:MERC) has announced inflows into existing managed funds and successful new fundraises totalling around £80mln.
This significant increase comes from various sources, including the recent acquisition of Frontier Development Capital (FDC), with an additional £30mln raised for the FDC Debt LP fund.
Other contributors to the total include £18mln raised by the Northern Venture Capital Trusts and £13.6mln secured by Mercia’s latest Knowledge-intensive Impact Enterprise Investment Scheme fund.
On top of this, there were equity allocations from the British Business Bank amounting to £18.8mln, split between the Mercia-managed Northern Powerhouse Investment Fund and the Midlands Engine Investment Proof-of-Concept Fund.
As of 31 March 2023, Mercia had £37.8mln of unrestricted cash on its balance sheet and no debt, allowing the company to maintain significant liquidity within its managed funds to support both existing and new investee companies.
Mercia’s chief executive, Dr Mark Payton, said: “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 fundraising period in the UK.”
He further added that the inflows demonstrate the strength of Mercia’s business model and the investor confidence that the company has built through its successful investment track record.
Payton also expressed satisfaction with FDC’s immediate positive impact on the group, following its successful integration.
As a debt-free company, Mercia is in a strong position to support its existing portfolio companies while identifying and capitalising on new opportunities, as it continues to build its reputation as a leading, regionally-based partner of choice for ambitious entrepreneurs.
Mercia is a proactive and regionally-focused specialist asset manager with around £1.4bn under management,
