Proactive specialist asset management
We provide venture, private equity or debt finance to regional businesses with growth ambition.
Mercia’s EIS fund is a tax-efficient technology fund, optimised to source, support and scale UK growth enterprise across key sectors in which we have deep expertise. The Fund aims to triple (3x) invested capital in five to seven years (including tax reliefs), by the creation of a diverse, regionally focused technology fund.
Key features of Mercia EIS fund
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Minimum Investment£25,000 |
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Target portfolio sizeApproximately 12 companies |
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Deployment timeframeEach EIS fund aims to be fully invested within 12 months of the fund closing |
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Target performanceMercia aims to triple invested capital (including income tax relief and loss relief) |
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Closing datesWe always have an EIS Fund open, with funds closing at the end of March, June and December of each year |
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Investments are made into sectorswhich have modest capital requirements but high growth potential |
Past performance*
EIS funds before April 2015 average 3.2x including tax, with 1.9x realised.
We continue to find, nurture and realise value in the regions. In 2020 against a backdrop of a worldwide pandemic, we generated a 8.6x return for our Enterprise Investment Scheme (EIS) investors from one exit and an 8x return from a second exit. These are significant results, not least because they completed during a period of turbulence and immense change, but also because they demonstrate the competitive edge derived from our Complete Connected Capital and the leverage offered by our resilient business model
– Dr Mark Payton, Chief Executive Officer
Mercia's recent EIS investments
Members of our investment team have been giving updates on Mercia’s EIS portfolio companies, as well as explaining a little more about our co-investment model.
Learn more about our portfolio companies such as Invizius, Cyan Forensics, NuVision, Eventum Orthopaedics and many others.
Our business model
We firmly believe in both the resilience and the value that resides within SMEs located in the UK’s regions. Mercia has been working hard to back exceptional businesses and, in part, redress the funding imbalance. As a result, we are proud to be one of the most active investors in the UK regions, fueling our own growth in the provision of private equity, venture capital and debt – what we term our ‘Complete Connected Capital’
Mercia is a responsible investor
- Codify our existing ESG processes
- Regional investor, working with the government to stimulate regional development
- We are a value-add investors, focused on the Governance in ESG
- Leverage, via our portfolio of 400 companies
“Companies that pay attention to environmental; social and governance concerns do not experience a drag on value creation – in fact, quite the opposite”
Watch ‘What ESG adds to Mercia’s EIS Funds’ webinar here
Visit Mercia’s ESG page here
The Mercia EIS proposition is already independently recognised to be one of the leading EIS funds in the market and we are on a journey. We are building on our group’s institutional standards to create a series of successful EIS funds, supporting great high-growth companies, and providing consistent returns to investors.
– Dr Paul Mattick, Head of Sales & Private Investor Relations
What makes us different
Regional focus
London and the South East have a significant oversupply of capital creating high pre-money valuations. The UK regions offer exciting deals with businesses that are priced sensibly and have relatively modest capital needs that we can, if we choose to, support solely from our own means.
Experienced team
Over 100 colleagues have strengthened Mercia’s business model through their combined business expertise, geographic and investment knowledge. Mercia has eight regional offices across the UK, as well as two other additional locations from our staff can be based. Our team has been our priority during 2020 and in response to COVID-19, we have ensured that we safeguarded the team’s health and wellbeing.
Mercia platform
Our Platform provides access to high-quality business leaders, advisory teams and operational specialists to offer relevant support our portfolio.
Established partnerships
Powerful relationships and deeply embedded ecosystems provide unparalleled access to a wealth of opportunities across the regions. From our 19 university partnerships to our non-executive networks, we are well placed as the investment partner of choice.
We are delivering strong returns for our investors
We sold The Native Antigen Company to LGC in July 2020
Leading supplier of native and recombinant viral and bacterial antigens, antibodies and immunoassays. We first invested in 2013 via MGF1 (EIS Fund). Delivered a circa 8.6 times return for the EIS Fund.
We sold Clear Review to Advanced in October 2020
SaaS tool providing organisations with data and systems to improve performance management. We first invested in 2018 via MGF8 (EIS Fund). Acquired for up to £26m in October 2020 which delivered a circa 8 times return for the EIS Fund.
We sold Refract to Allego in December 2020
Helps organisations improve the performance of their sales teams giving managers insight into team members’ conversations. We first invested in 2016 via MGF5 (EIS Fund). Delivered a profitable return for our investors.
We sold Oxgene to WuXi AppTec in March 2021
Specialises in advanced technologies for cell and gene therapy. SEIS/EIS invested between 2013 and 2016, followed by Mercia PLC, and delivered a return of up to 20 times cost.
Sense Biodetection
With operations in both the UK and the US, Sense is focused on the development of instrument-free molecular diagnostics delivering true point-of-care molecular testing.
In October 2019 Sense raised £10.5million in Series A investments and concurrently secured a grant of £1.8million from Innovate UK.
In March 2020, Sense announced an accelerated programme to launch the world’s first instrument-free, point-of-care molecular diagnostic test for COVID-19, partnering with Phillips-Medisize (a leading global medical device innovator, developer and manufacturer, owned by Molex) to scale up production of its testing to meet the growing demand for rapid diagnostics. In October of the same year the company also announced successful series B investment to support their scale up plans.
Voxpopme
Voxpopme, Birmingham-founded, but US-based, Voxpopme is a video insights platform that provides innovative video analytics for internationally renowned clients such as Microsoft, Shell, Coca-Cola, Verizon and Expedia.
The business has demonstrated continued growth in ARR over the last six months to 30 September 2020 against the backdrop of COVID-19. Post period end in November 2020, Voxpopme secured a syndicated investment of £3.1million in which Mercia contributed a direct investment of £0.8million. This company demonstrates Mercia’s Complete Connected Capital in action as it has received investment from our EIS Funds, the Northern VCT Funds as well as Mercia’s balance sheet.
