Mercia's hybrid model is proven to work
Mercia is a proactive and regionally focused specialist asset manager led by an entrepreneurial leadership team with a track record of value creation.
Mercia’s hybrid model, which combines profitable funds under management with access to maturing balance sheet investment, is proven to work.
Why invest with Mercia?
Long-term revenue visibility, sustainable profitability and evergreen balance sheet
Performance track record
We pride ourselves on delivering outstanding performance for our investors as Mercia consistently achieves impressive results. Our equity funds realised c.£225m from 69 companies over the last two financial years. Mercia’s hybrid model, which combines profitable FuM with maturing balance sheet investment is proven to work. As too our ability to identify and nurture high-potential businesses.
Recognised as a market leader
We are proud to have received recognition and accolades from leading industry experts. We have continued to make good progress into FY24 with c.£23m of fund inflows. Mercia is well placed for domestic organic FuM expansion with strong liquidity:
- c.£38m, debt-free, balance sheet cash position
- Additional c.£340m unrestricted FuM cash
Trusted by investors
We understand that trust and transparency are essential when it comes to managing your investments. We prioritise building long-term relationships with our investors and their financial advisers, providing them with personalised support and guidance throughout their investment journey.
Investing for good
Mercia has always aspired to be the first choice for investors, investees and employees therefore ESG has always been central to our investment strategy. We have a rich legacy of investing in impactful businesses such as Faradion, The Native Antigen Company and OXGENE all demonstrating that strong ESG credentials can generate superior returns.
Our journey began as a venture capital firm in 1982 and our investment offering has continued to expand ever since.
We are now one of the most active investors in the market regularly featuring in industry top lists including Beauhurst and recognised by independent bodies who continue to publish buy recommendations.
Today we manage more than c.£1.4billion of assets under management and are working towards Mercia 20:20, our three-year twin objectives to grow AuM on average of 20% per annum over the three-year period to 31 March 2024, and to deliver average pre-tax profits of £20.0million per annum over the same three-year period.
Where we invest
We are a domestic investor only and believe passionately in the untapped potential of the UK regions. While we invest across the United Kingdom, c.80% of our investment activity is within the regions outside the South East. These regions provide us with unrivalled deal flow with attractive valuations which means that we can deploy capital efficiently and provide better value for our clients. We are dedicated to driving economic growth and innovation across the UK, supporting ambitious businesses that exhibit high-growth potential.