b'Mercia asset Management PLc41Annual Report and Accounts 2021PrivateEquity FundsWayne thomasManaging director,Mercia Private equity Fundsthe uK has been a challenging placefinancial year. This hands-on approach isStrategic reportfor private equity investment overaligned with the interests of our limited the past year. partners, who have the same appetite for developing strong relationships and has At the onset of the pandemic our immediateproven successful, as seen by the resilience focus was to stabilise our existing portfolioof our portfolio that have all navigated theGovernance Financial statementsbut, as the year progressed into H2, welast year positively.turned our attention to sourcing newThe effect of COVID-19 and the geopolitical investment opportunities and developing uncertainty of the last year has undoubtedly a strong pipeline for the year ahead. We had a diffuse impact on private equity will continue to focus on addressing theinvesting, the long-term consequences of short-term needs of our portfoliowhich are still to be fully understood. businesses, liquidity, the impact on theHowever, the last year has afforded us a workforce as well as supply chain andrenewed appreciation of the role of private operational disruption. equity as a driver of growth in regional We have always worked closely with ouremployment and the type of businesses and portfolio businesses. These long-termmanagement teams that will deliver relationships support our SMEs in identifyingsustainable success in post-pandemic areas for operational improvement. Themarkets. Equally, we are well positioned to experience and talent resource we alsocapitalise on our ability to leverage deals provide helps drive increased efficiencies tothrough our strong liquidity and Complete ensure that these businesses reach criticalConnected Capital model, so we look ahead mass. Our ability to add this level of value toto the new year with confidence.c.314m our portfolio has been significant during the'