Mercia Fund Management Ltd

Mercia Fund Management Ltd

Mercia Fund Management Ltd

About

Mercia is a leading investment business specialising in the commercialisation of UK technology companies. Mercia Growth Fund investments may benefit from strategic follow-on capital from Mercia Technologies PLC. 

The investment model is supported by four key strategies:

The complete capital solution Expertise and sector focus Geographic focus Investor services

Our average performance is 2x multiple of cost*, including tax reliefs, in under three years (equivalent of 41% IRR) and we may be able to offer an option to take early liquidity.

More detail can be found in the information memorandum.

*Mercia has successfully launched eight tax-efficient funds, six of which are fully invested. Performance is based on the combination of realised and unrealised value from the first four funds which have been fully invested for over a year.

"This is all superb! Way ahead of the curve for what most other managers are producing."

James Ramsay - CEO Tax Efficient Procurement Services

Investment focus

Mercia uses both their EIS funds and their PLC's balance sheet capital to invest across four distinct asset classes of venture, private equity and debt, referred to as our ‘Complete Capital Solution’. Our Vision is to be the first choice for investors, investees and employees and, by aspiring to be the first choice, we believe that Mercia will deliver superior returns for business owners, shareholders and fund investors alike.

Key team members

Dr Nicola Broughton - Investment Director, Head of Universities

Nicola leads a team of university specialists which cover Mercia’s 19 partnerships. The team are actively sourcing new university spinouts across all of our sectors at the early stage, as well as being responsible for managing a portfolio of spin-out companies.

Dr Alistair Forbes - Investment Director Head of Software & the Internet

Alistair joined the Group in 2017 and leads the Software & the Internet Investment Team, which focuses on investments in artificial intelligence, cyber security, marketing technology and software as a service.

Dr Mark Volanthen - Investment Director, Head of Electronics, Materials, Manufacturing & Engineering

Mark heads the Electronics, Materials, Manufacturing & Engineering sector and has over 20 years' experience in this area of expertise. He supports existing portfolio companies with their operation and growth, whilst also sourcing new investments.

Investment opportunities

Structure
Fund
Min. Investment
£25,000.00
Closing date
Evergreen
Sector
Technology
Structure
Fund
Min. Investment
£100,000.00
Closing date
Evergreen
Sector
Technology
Structure
Single company deal
Sector
Technology (Software)
Cannot find the investment opportunity you are looking for?

Exited investments

104x return
Progressively exited after listing on AIM in March 2016, concluded by March 2019.
BluePrism

We were the first investor in 2004 when the founders, Alistair Bathgate and Dave Moss, came to us after they had won their first bespoke deal with Barclays. We invested £900,000 over the following two years to support their progress and help build their team. They moved to a channel partner model as their newly coined ‘robotic process automation’ software started to gain traction. From there the story is impressive, following its AIM listing in 2016 and stellar subsequent growth to a market value of over £1.8billion. The progress continued and ultimately resulted in a staggering £95.0million profit on the investment, more than 100 times return on original investment cost.

“Mercia made its first investment in Blue Prism through the Rising Stars Growth Fund in 2004 and remained a supportive investor for many years whilst the business scaled to the size which it is today. We have been grateful for both the investment and the significant expertise of the investment team, in particular Julian Viggars, who has played an important role in our success.” – Alistair Bathgate, CEO - Blue Prism

4.8x excluding tax return
29/07/2016
LM technology

LM Technologies is a Bluetooth and Wi-Fi module and adapter manufacturer that designs its own hardware, firmware and software applications, which are aimed at delivering solutions for industry.


Our EIS investors were provided the option to undertake a partial exit, via a discretionary sale of shares, which returned 4.8x cost of investment after 3 years and 4 months from point of investment.

Example portfolio companies

As an investor, Mercia is highly active in each business it supports, taking a board position in each equity investment to ensure it maintains a hands-on approach, driven by the significant sector experience and expertise of the investment team who add significant long-term value to the portfolio.

Awards

Growth Investor Awards 2017, Best Enterprise Investment Scheme (EIS) Investment Manager
Growth Investor Awards 2017, Finalist Best EIS Investment Manager
Growth Investor Awards 2017, Finalist Exit of the Year

Investments offered

  • EIS
  • SEIS
  • VC

Assets under management

£508,000,000
NPIF, MEIF, NEVFDebt EIS, PE
NPIF, MEIF, NEVF
Debt
EIS, PE

Fund raising track record

£ million
2015/16
2016/17
2017/18
2018/19