UK’s Mercia Asset Management Raise $99.95 million in New Funds

The UK-based Mercia Asset Management PLC, the proactive, regionally focused specialist asset manager with $1.75 billion of assets under management, on Tuesday announced continued inflows into its existing managed funds and successful new fund raises, together totaling $99.95 million.

The recent inflows across Mercia’s managed funds were as follows:

Frontier Development Capital (FDC) continued to grow following its recent acquisition by Mercia, with an additional $37.48 million raised for its FDC Debt LP fund and an additional $22.49 million has been raised by the Northern Venture Capital Trusts.

Mercia’s latest Knowledge-intensive Impact Enterprise Investment Scheme fund raised $2 million, and the Mercia-managed Northern Powerhouse Investment Fund received $12.87 million of additional equity allocation from the British Business Bank.

The Mercia-managed Midlands Engine Investment Proof-of-Concept Fund also received $10.62 million of additional equity allocation from the British Business Bank.

As on 31 March 2023, Mercia had $47.23 million of unrestricted cash on its balance sheet and no debt. The Group also continues to have significant liquidity within its managed funds to support both existing and new investee companies.

Exhibits Mercia’s Prowess

In his comments, Dr Mark Payton, CEO of Mercia Asset Management PLC, said that two things stood 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. Together, these new inflows highlight the strength of the Mercia model, and the investor confidence we have built through our investment track record,” Payton said.

“It is 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,” Payton added.

Loan for Prop Tech Firm

Last week, a Lancashire Prop Tech firm, whose software is used by many of the UK’s biggest construction companies, has secured a seven-figure loan to support its growth from NPIF – Mercia Debt Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund, and Mercia’s SME Loans fund.

The funding will enable Clitheroe-based Glider to create 15 new jobs and meet the growing demand as construction firms and property managers increasingly adopt digital technology to improve efficiency and sustainability and comply with new safety standards.

Glider’s software provides a secure online platform for managing asset information throughout the entire lifecycle of a building – enabling architects and contractors to share project information and models at the design and construction stage, and owners to manage their buildings and wider estates more effectively once they are in use.

“gliderbim” helps to minimise safety risk, improve efficiency and comply with the Building Safety Act, which was introduced last year in the wake of the Grenfell Tower tragedy and which obliges building owners and managers to provide a ‘golden thread’ to show that safety has been considered at every stage.

Launched in 2018, gliderbim is now used by many industry professionals such as Mace, Lendlease, Kier Group and Lovell, and building owners including Deutsche Bank, Google, Deloitte, British Antarctic Surveys, and the government’s Defence Infrastructure Organisation.