Henley-in-Arden, 6 March 2013. Venture capital fund manager Mercia Fund Management has launched Mercia Growth Fund 2, its second hybrid EIS/SEIS fund.
Mercia Growth Fund 2 offers the flexibility to invest either in EIS or SEIS, while enabling investors to maximise tax efficiency.
Dr. Mark Payton, Managing Director of Mercia Fund Management commented on the fund launch: “This is an extremely exciting time for our team, our investors and investment portfolio – the interest in investing in our new hybrid fund is already high, especially as investors seek tax-efficient investments while supporting innovative businesses. We are also working on finalising our investments from Mercia Growth Fund 1.”
EIS and SEIS investments are highly attractive for professional investors, UK wealth managers and UK family offices and offer several key advantages such as:
50 per cent income tax relief and 28 per cent capital gains tax relief for SEIS investment
30 per cent income tax relief and capital gains tax deferral for EIS investment
Tax-free capital gain
100 per cent Inheritance Tax property relief
Substantial capital loss relief.
The Mercia Growth Fund 2 is expected to close by June this year (although interest is so strong that MFM are predicting an early close).
The new fund follows the successful close and investment of Mercia Growth Fund 1. The SEIS portion of that fund was oversubscribed, while the entire fund reached approximately to £2 million in size.
To date, Mercia Fund Management has already invested approximately £7 million into EIS and SEIS-qualifying businesses, while leveraging in excess of £50 million in syndicate investment.
The VC firm manages a portfolio of institutional funds that offer a low risk deal flow. Its long-term partnerships with eight universities (including Warwick and Birmingham) offer a wide range of high-growth potential investment opportunities.
Mercia Fund Management recently announced that Forward Group, with circa £100 million of assets under management, has become a shareholder. The new relationship provides a larger investment pool, while accelerating Mercia Fund Management and Forward Group’s ambitions to build a fully integrated financial services business providing ‘Intelligent Capital’, portfolio ‘Support Services’ and a dedicated ‘Incubator Space’ for invested businesses.
Mercia Fund Management will soon be holding an Open House event for companies seeking seed investment. To be notified of event details, please contact us: http://www.merciafund.co.uk/contact-us/
NB: SEIS is Seed Enterprise Investment Scheme and EIS is Enterprise Investment Scheme.
About Mercia Fund Management
Mercia Fund Management (MFM) is a venture capital fund manager with over £17 million under active management.
MFM provides investment growth capital for businesses from those with early commercial traction through to those seeking expansion or working capital that are trading profitably. Furthermore, MFM can also provide cost-effective incubator accommodation at Forward House in Henley-in-Arden coupled with centralised support services in keeping with its model as a hands on, active investor.
MFM is an FSA authorised and regulated fund manager under FSMA (FRN: 524856).