Mercia has always sought to provide diversity in finance markets as well as the geographic scope of where that investment is made. At Mercia, the pathway for regional SMEs to access venture capital intersects two other asset classes, private equity and debt finance, the latter of which provides SMEs with the critical loans that they need when many traditional routes to finance are no longer available.
Strong businesses have been hit with elevated levels of debt post pandemic and now face further uncertainty with inflation and interest rate hikes. Anticipation for economic recovery has had to be suspended.
But, even though this year remains challenging, many businesses are taking a longer view and challenging the status quo with an eye on growth. Whether pivoting to address emerging trends or leveraging the opportunity to make strategic acquisitions of similar businesses in the sector to strengthen capabilities or extend their market share, such businesses are at the centre of the corporate activity that is changing the profile of Mercia’s recent debt finance applications.
Several exciting businesses have joined Mercia’s portfolio, demonstrating the power of debt to gain a competitive advantage.