Mercia secures two further BBB contracts

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."

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For further information, please contact:

Mercia Asset Management PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer www.mercia.co.uk	[phone]
Canaccord Genuity Limited (NOMAD and Joint Broker)	[phone]
Simon Bridges, Emma Gabriel
Singer Capital Markets (Joint Broker)	[phone]
Harry Gooden, James Moat
FTI Consulting	[phone]
Tom Blackwell, Jenny Boyd
[e-mail]

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

 

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