Mercia wins £108m Northern Powerhouse mandates

Mark Payton

Mercia Technologies plc, the investment firm that focuses on the UK regions, said it was successful in its bids, via its subsidiary Enterprise Ventures Limited, to manage two of the British Business Bank’s new Northern Powerhouse Investment Funds valued at about £108.5 million.

“Following a highly competitive procurement process managed by the BBB, the group has secured £108.5 million across two mandates — a £57.5 million equity fund and a £51 million debt fund,” said Mercia.

“The funds will be deployed via Mercia’s North of England offices, which will be focused primarily on investing in SMEs in Yorkshire, the Humber and Tees Valley regions, where the group already has a successful track record of supporting start-up and later stage companies that have high growth potential.”

Mercia said as a result of the two awards, it has increased its third party funds under management by nearly 50% to more than £336.5 million.

Mercia Technologies plc CEO Mark Payton said: “We are delighted that, in a highly competitive field, the group has been selected to manage two Northern Powerhouse Investment Funds.

“The new funds are strongly aligned with … our strategic aim to invest in the UK’s underserved regions, supporting the next generation of businesses with high growth potential, where we are already very active.

“These two new funds will play a leading role in the development of innovative small businesses located in the North of England.

“The group is well placed to manage these new mandates having already delivered several notable successes for similar public and private funds, including Blue Prism Group PLC, Optibiotix Health PLC, Xeros Technology Group plc and Concepta PLC.

“We are looking forward to working with the BBB on the successful delivery of these new mandates over the coming years.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union, attracting investment from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020, and the European Investment Bank.