Mercia Asset Management, a leading capital provider to small and medium-sized enterprises (SMEs) in the UK, has had a successful first half of the year, with a 24% increase in the amount invested compared to the same period last year.
During the six months ending in June, Mercia completed 132 investments with a total value of £94.6 million, compared to 97 investments worth £76 million in the previous year. The majority of these investments, around 85%, were made in companies outside of London, aligning with Mercia’s mission to address the funding gap in regional areas and connect promising businesses with the right funding and support.
Mercia typically invests between £500,000 and £10 million, with over half of its funding going to early-stage and growth businesses in the form of venture capital. The remainder is primarily provided as loan finance. The company manages various third-party funds, including parts of the Northern Powerhouse Investment Fund (NPIF), Midlands Engine Investment Fund (MEIF), and North East Venture Fund (NEVF). It also raises its own EIS and VCT funds and makes direct investments from its balance sheet. Mercia is actively expanding its funds under management to meet the increasing demand, particularly from regional businesses.
Some notable investments made by Mercia during this period include Sitehop, a Sheffield-based company with an encryption solution for telecoms and data networks, Zedify, the UK’s largest electric bike parcel delivery network, and CanSense, a Swansea-based company with a blood test for early-stage bowel cancer detection. Mercia also successfully exited several investments, including the sale of SockMonkey Studios, a Middlesbrough games developer, to Behaviour Interactive of Canada.
CEO Dr. Mark Payton expressed his satisfaction with Mercia’s performance, noting the increase in both the value and volume of investments. He emphasized Mercia’s commitment to supporting the next generation of successful entrepreneurs and creating a sustainable environment for business growth. He also emphasized the company’s focus on diversity, equity, and inclusion, stating that Mercia is actively exploring ways to engage with communities that have yet to fully connect with capital providers.
Overall, Mercia Asset Management’s strong performance in the first half of 2022 reflects its dedication to supporting SMEs across the UK and its success in identifying promising investment opportunities.