Mercia Asset Management PLC is pleased to announce that it has been appointed to manage two further new British Business Bank fund mandates under its ‘Nations and Regions Investments’ Northern Powerhouse Investment Fund II initiative.
The two new NPIF II mandates, representing a total of £153.0million in new funds under management, are as follows:
- NPIF II – Equity YH LP – £100.0million to be invested in Yorkshire and the Humber, managed by Mercia Regional Ventures; and
- NPIF II – Debt YH LP – £53.0million to be lent in Yorkshire and the Humber, managed by Mercia Business Loans.
As with the £207.0million of new BBB fund mandates announced on 29 February 2024, these two new mandates have also been awarded following a highly competitive selection process.
The funds will be managed and deployed by the Group’s staff based largely across three of its existing offices in Sheffield, Leeds and Hull. They will be focused on supporting businesses across the entire Yorkshire and the Humber region, where the Group has already established a strong track record in supporting SMEs.
The five new BBB mandate awards represent a combined £360.0million of new Funds under Management and Mercia anticipates that the incremental annual revenues, net of revenue reductions as Mercia’s existing BBB mandates enter their five-year realisation phase, will be c.£4million.
Dr Mark Payton, CEO of Mercia Asset Management PLC, said: “As with last month’s announcement that the Group had been selected by the British Business Bank to manage three new mandates totalling £207.0million, we are delighted that, following an equally competitive selection process, the Group has also now been selected to manage two new Northern Powerhouse II mandates, totalling an additional £153.0million.
“We recognise and thank the British Business Bank for the trust placed in all of us at Mercia. This is a further strong vote of confidence in our investment track-record, which is built on our ability to successfully deploy the capital that is really needed to support exciting growth companies through our established regional footprints and networks.
“The combined £360.0million of new fund mandate awards is anticipated to result in c.£4million of net incremental revenue in our next financial year, supporting our naturally evolving strategic focus of growing our profitable third party fund management operations.”