b'26 Mercia asset Management PLc Annual Report and Accounts 2021Our business modelProving that the funds- Key strengthsand differentiatorsfirst modelFinding valueThe UK regions offer exciting deals with businesses that may be based locally, but have the potential to be globally works for all recognised. Our investment team know where to find these thriving regional businesses often overlooked by other investors. experienced team A rare combination of regionally located, CompleteConnectedCapital highly experienced investment executives and operational specialists allows Mercia to source and structure Third-party funds deliver future directinvestment opportunities that we scale investments, attractive returns and underpin awith our overlapping funds and progressive dividend policy. Our proprietaryexpertise.capital provides sustained growth. Powerful partnerships An enviable network of NXDs, subject experts and advisers that we trust, and importantly, trust us, leverages our trusted investment partner reputation to help drive deal origination. In addition to helping Boards achieve optimal growth, our network works cohesively to offer best practice on how to grow a business that helps us strengthen our portfolios resilience.capital resourceMercia has c.940million in AuM including c.176million of net assets and c.764million in FuM, of which there is c.314million of unrestricted free cash to invest over the next two to five years.Funds-first business modelOur proven hybrid business model supports businesses with discrete pools of capital that overlap and interconnect and are accessible to our portfolio when they need it. Delivering future direct investments, our third-party funds offer attractive returns for our investors and at the same time underpin a progressive dividend policy. Our balance sheet provides the growth capital.'