b'Annual Report & Accounts 2022 Mercia Asset Management PLC 9Strategic reportAmbitious for our investors each management team to help them Coupled with the increasing qualityfulfil their growth ambitions. Within of our portfolio is our Completeour Group we have established Mercia Connected Capital, the growing poolsNucleus to support our investees and of different types of capital that willhelp accelerate their growththis help take a business from its inception,is a consolidated function with the through scale up and on to profitability.expertise and connections to facilitate We make sure that the right capitalbusiness development, leadership is available at the right time for ourtraining, networking and access to an portfolio businesses, whilst ensuringextensive talent pool of executives that regular reporting, externallyand non-executive directors. Our audited portfolio holding values, regularnationwide infrastructure of offices and face-to-face and digital access to Merciameeting facilities, extensive Partnership keep our investors fully informed ofProgramme and access to our in-their investment progress. This hashouse legal expertise on investment been a successful period for Merciastransactions and exits, together provide investors with c.87million returned tothe synergies that engender speed individual and institutional investorsand consistency of growth. To see the as a result of investment realisations.results of Mercias Complete Connected Due to the nature of Mercias long- Capital combined with Mercia Nucleus, term third-party capital, which is heldwithin the context of our funds-first in closed-end funds, we do not havehybrid model, please refer to Julian exposure to redemptions. The relativelyViggars Chief Investment Officer (CIO) small increase in AuM is a consequencereview, starting on page 14. of these successful exits, leading to elevated cash returns to investors.Ambitious for our employeesHowever, our strong investmentCulture eats strategy for breakfast performance has been noted by EIS andand in the current post-pandemic VCT market analysts in particular, whichenvironment, there has never been should help drive future AuM growth,a better truism; but culture does as investors look to re-invest and/ not stand proud of ambition, and I have no doubt that the momentumor follow our successful track recordmaking a real and equitable impact achieved, as outlined in theof investment returns. We are one ofin the communities that we serve is Responsible business review, startingthe leading managers of EIS and VCTsfuelled by our strong desire to achieve on page 28, will instill a confidence inin the country, and whilst we are notsuccess. Mercias performance and our future intent and the Mercia teamcomplacent in respect of the successbuilding momentum is testament to that drives these important initiatives.experienced this year, our growing exitthe whole #OneMercia team that we track record and investment returnshave been able to attract to the Group Investing in local communities bode well for future AuM growth. since our 2014 initial public offering We are exclusively focused on the UK(IPO), with an increasing number market, investing in small and medium- Ambitious for our investees moving up through our business from sized enterprises (SMEs), typicallyWith an active network nationwide, wewithin. Mercia has now reached critical located within two hours of one of ourreceive over 2,500 business plans permass and is thus able to ensure that eight physical offices. A demonstrationannum. Of those received, we typicallycontinuous development and career of our continued growth is reflected ininvest in c.5%. As a committed investorprogression is offered, where possible, the recent opening of our Bristol office.however, we seek to respond to allto each team member, to empower Mercias investment reach is nationwide;approaches for investment within twotheir collaborative nature and sustain across the South West, South East, theworking days, and for those 95% nottheir personal ambition within Mercia. Midlands, the North of England andready for our investment today, weWe will not stand still, as we constantly into Scotland and Wales, providing aendeavour to support them to findlook to improve how we can support, genuine regional presence within aalternative funding sources, wheredevelop and motivate our staff; Mercia national footprint. The companies inpossible. For those that do join ourwill only ever be as good as the talent which we invest create jobs and embedgrowing portfolios, we will typicallywe attract, develop and retain.themselves into the local economies astake a position on the board of our they grow.equity investments and work with'