Technology investor celebrates funds under management fillip
Technology investor Mercia has hailed 2017 as a year of growth thanks to a significant increase in its funds under management.
Mercia, with offices in Manchester, Liverpool and Preston, claims to be one of the UK’s most active technology investors and a key source of funding and scaling for regional SMEs.
During the year it invested almost £9m in 16 North West companies including Intechnica, whose web traffic software is used by leading retailers, and the artificial intelligence start-up MindTrace, both based in Manchester.
It also realised £34.5m from its investment in Blue Prism Group plc, the Newton-le-Willows based software automation company which it first backed in 2004, representing a 55x return.
During the year Mercia rebranded Enterprise Ventures, the North West-based fund manager which it acquired in 2016, to Mercia Fund Managers.
In total Mercia invested more than £48m nationally across the group during 2017 and increased its third party funds under management from £220m at the start of the year to in excess of £350m as at December 31.
The increase follows its appointment by the British Business Bank in February to manage more than £108.5m in new debt and equity funds from the Northern Powerhouse Investment Funds.
In December, it also announced the first closing of EV Growth II fund, having raised an initial £45.1m from institutions and private investors.
In 2017, Mercia opened new offices in Birmingham, Sheffield and Leeds. It now has over 70 people in eight locations across the UK, and has partnerships with 19 universities including the University of Liverpool and Liverpool John Moores University.
Julian Viggars, head of technology investments, said:“The success of companies like Blue Prism shows how Mercia is succeeding in finding hidden value in the regions outside London. In 2017 we have increased our funds under management by over 50%, which means that we can direct even more investment to these underserved regions to create jobs and prosperity and generate returns for investors.”
Mark Payton, chief executive of Mercia Technologies, said:“During 2017 Mercia has continued to strengthen its regional presence, build its investment portfolio, its team and its network of university partners.
“The Government’s recent Patient Capital Review highlighted the importance of long-term investment to build the businesses of the future. Mercia’s Complete Capital Solution model does just that.
“By identifying innovative regional businesses with high-growth potential, and providing them with patient investment and practical support at each stage of the cycle, we can turn them into global players whilst delivering value for our shareholders.”