Contents
Current fund availability
Take advantage of our currently open funds
Knowledge-intensive Fund
Will open in January 2024. Closes at the end of March 2024
- Documents will become available in January
EIS Fund overview
Target performance
Our objective is to maximise returns for our investors delivering a 3x return on invested capital, including income tax relief and loss relief.
Diversified portfolio
Our funds consist of a well-diversified portfolio encompassing 12-15 technology companies, ensuring broad exposure to different growth opportunities.
Sector focus
We concentrate on key sectors, such as Life Sciences & Digital Health, AI & Software, Clean Tech, and Deep Tech, which offer high-growth potential and align with our investment philosophy of modest capital requirements.
Holding period
Our investments typically have a holding period of 5-7 years, allowing sufficient time for value creation.
Deployment timeframe
Each EIS fund aims to be fully invested within 12 months of closing, ensuring efficient capital deployment.
Minimum investment
The minimum investment amount is £25,000 for Mercia EIS and £10,000 for our Knowledge-intensive EIS, providing accessibility to a wide range of investors.
Always open
Rolling Mercia EIS funds enable investors to engage at their convenience with regular closes in March, September, and December and Mercia's Knowledge-intensive EIS is closed in March each year annually.
Key sectors at a glance
- Life Science and Digital Health technologies that improve health care delivery, outcomes, and personal wellness
- Deep Tech technologies based on scientific research and engineering innovation, including artificial intelligence and biotechnology
- Clean Tech that reduce environment impact, enable renewable energy or decrease waste
- Enterprise software technologies that can standardise and automate business processes
- Cybersecurity technology used to protect digital system and data
A proven track record of success
Mercia has established a solid performance history, consistently outperforming market benchmarks and generating attractive returns for our investors. With over 170 successful company exits, we have demonstrated our ability to identify and nurture high-potential businesses.
Performance highlights:
- Mature fund performance:
- EIS funds before April 2015 averaged 3.4x return.
- Immature fund performance:
- EIS funds before April 2018 averaged 2.7x return.
- EIS funds before April 2021 averaged 2.3x return.
All the above valuations include tax reliefs and are accurate as of September 2022. It is essential to note that past performance does not guarantee future results.
“The Fund has facilitated 15 profitable exits to date, including full and partial exits with returns from The Native Antigen Company, C7 Health, and Oxford Genetics Limited which have fully exited with 8.70x, 14.18x, and 16.28x return multiples respectively. This is very promising, and one of the more developed records in the EIS market” MICAP
Exits highlighting our success
- The Native Antigen Company: Sold in July 2020, generating an approximate 8.6x return.
- Clear Review: Sold in October 2020, delivering an approximate 8x return.
- Oxgene: Sold in March 2021, yielding a return of up to 20x.
- GENBA Digital: Sold in May 2021, providing a return of up to 8x (including earn-out).
- Snappy Shopper: Sold in July 2021, delivering an approximate 8x return and 218% IRR.
- In-Part: Sold in December 2021 at 4.4x.
- Kumulos: Sold in March 2022 at up to 3.5x.
- nDreams: Sold in March 2022 at 7.8x.
- C7 Health: Sold in June 2022 at an impressive 14.1x return.
Mercia's Knowledge-intensive EIS
Our Knowledge-intensive EIS is our approved fund, enabling tax relief to be carried back up to one year earlier compared to a typical fund. For tax purposes, the investment date is the fund’s closing date, rather than its deployment date. Instead of applying tax relief to each individual investment, the fund is treated as a single entity and you will receive a single EIS5 tax certificate.
Both Mercia EIS and our Knowledge-intensive EIS funds have received excellent independent reviews, making them both attractive options for investors seeking high returns.
Why choose Mercia EIS?
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Recognised as a market leader
We are proud to have received recognition and accolades from leading industry experts. Independent reviews by reputable institutions such as Churchill, MICAP, and Allenbridge consistently place Mercia as a top-performing fund manager. These endorsements validate our investment strategies, risk management practices, and unwavering commitment to delivering superior results for our investors.
“With a final rating of 87 out of 100, Mercia is firmly ensconced at the top table of EIS managers”.
Martin Churchill, Tax Efficient Review -
Trusted by investors and financial advisers
Investing with Mercia means gaining access to a reliable and dependable fund manager who puts your interests first. We understand the importance of trust and transparency in managing your investments. Building long-term relationships with our investors and their financial advisers is our priority and we provide investor relations support throughout the lifetime of the investment.
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Achieving diversification and managing risk
Our EIS funds offer access to a diverse portfolio of high-growth sectors. These sectors present tremendous growth potential and exciting investment opportunities. What sets Mercia EIS apart is our inclusion of up to 12 companies in our portfolio, surpassing typical EIS funds. By diversifying across carefully selected technology companies, investors benefit from exposure to various high-growth sectors, ensuring that potential gains are not reliant on the success of a single company.
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A large Investment team dedicated to your success
Our investment team comprises seasoned professionals with extensive experience and a deep understanding of the venture capital landscape. Their expertise allows them to make informed investment decisions that drive growth and create value. Moreover, our team excels at seizing opportune moments to realise value, consistently returning cash to our investors.
“Strong returns, portfolio diversity and taking an active role to fund regional companies are key drivers in the continued investor demand for Mercia’s EIS Fund.”
Paul Mattick, Head of Sales and Private Investor Relations, Mercia
What sets us apart ?
Mercia’s geographical strategy
While 70% of venture capital typically flows into London-based companies, Mercia focuses on the untapped potential of the UK’s regions. Our approach enables us to identify sensibly priced businesses with modest capital requirements
Large investment team
Our success stems from a team of over 100 professionals with diverse expertise, geographic knowledge, and investment acumen. With offices across the UK, we are well-positioned to support investee companies leveraging our expanded networks.
Less reliance on private investment
Portfolio companies we support do not rely solely on private investment as we inject capital directly from our PLC balance sheet as well as the government funds we manage. Unlike many others who rely on third-party funds from private investors using EIS or VCT money, we leverage our own resources to fuel the growth of promising businesses.
Mercia’s growth network
Beyond financial backing, our portfolio companies gain exclusive access to a network of business leaders, expert advisory teams, and seasoned operational specialists. With 19 university partnerships and extensive non-executive networks, we have become the preferred investment partner for businesses seeking to grow and gain competitive edge.
Our commitment to ESG and responsible investing
Mercia is committed to environmental, social, and governance (ESG) principles. We actively codify our existing ESG processes, ensuring that sustainable practices and responsible business conduct are at the core of our investment decisions. As value-add investors, we prioritise the governance aspect of ESG, recognising its pivotal role in driving sustainable value creation, while contributing to a better future.
By leveraging our extensive portfolio of over 550 companies, we use our unique position to share best practices, encourage strong governance frameworks, and promote responsible business conduct across our invested businesses.
How to apply
To apply on behalf of your client, simply complete the online application form. Once your application is approved and an account is opened, you can proceed with the subscription via bank transfer. Within five working days, you will receive the welcome pack and login details to the Investor Centre.
Application support
If you have any questions about the fund or require assistance with your application, please reach out to Stefan Helm Stefan.helm@mercia.co.uk. You can also schedule a personalised Zoom meeting with Stefan to discuss your application in more detail.
Investor portal
Upon approval of your application, you will receive a welcome pack and gain access to your investor portal, an all-in-one platform designed to provide you with insights into your investments. Stay informed with comprehensive performance reports, access valuations, statements and tax certificates, all in one user-friendly interface. With 24/7 accessibility, our mobile-friendly portal empowers you with the information you need to make informed investment decisions and track the success of your portfolio.
Portal Log-in – Access tax certificates, valuations and performance documentation
Portal support – If you need to reset your password, please contact enquiries@mercia.co.uk