b'Annual Report & Accounts 2022 Mercia Asset Management PLC 13Strategic reportVenture Engaged investment Simplified deployment and 100k10m We are much more than the sum of ourstreamlined digital processes support Across the UK, from proof-of-conceptparts. Our use of Complete Connecteddeal origination in todays competitive to scale-up, we invest in fast-growthCapital pinpoints and defines the rightlandscape. They enhance the speed of Life Sciences, Digital Entertainment,capital within the required timeframeour response, expand the breadth of our Software, Hard Tech, Deep Tech andfor the firms we invest in. It allows uscoverage and increase our investment tech-enabled businesses that share ourthe opportunity to help assemble thecadencewhilst also refining our ambition for success.most talented, creative and experiencedcustomers experience. individuals for each investee company. c.592m It also facilitates access to investmentGreater scalability and reliability FuM structures that harness the power ofresults from cross-connected teams See more on pages 22 and 23. our immense, experienced commercialsharing data and transactions, whilst and non-executive networks. The Merciaworking together to design bespoke Private equity doctrine of interconnectivity deliverscapital solutions. They have, over Typically up to 10m value beyond just the benefit derivedtime, fostered a critical mass in our We support small businesses, infrom our overlapping pools of capital.key thematic areas. Our large network underserved markets, with theof non-executive directors, in-market investment capital they need to pursueSeamless collaboration allows usnetworks and our own scaling platform their growth and expansion plans. Fromto be responsive and flexible. With(Mercia Nucleus) drive a solid buyouts to buy-ins, from cash-outs toeight regional offices, we retain apartnership of growth with all ofgrowth capital, we have a track recordstrong presence across the UK. Weour investees.of delivering value-creation. Amongsthave digitally reenergised our systems our goals is to facilitate positive localand routines to offer both immediateA value-based culture and a shared economic impact.engagement and in-person support.desire for responsible investing define None of our investees are more thanthe people who are at the heart of c.48m two hours away from one of ourMercia. We have strengthened our FuM investment teams. This allows bothcommitments and have developed an See more on page 24. Mercia and our portfolio companiesexcellent set of ESG principles in-house. to positively embrace a changing andThey are intrinsic to our paradigm for Debt collaborative investment environment.business growth and expansion, and 100k1m have encouraged us to increase our Mercia supplies debt finance tofocus on the long-term environmental established profitable businesses and societal returns of purpose-led often working alongside our otherbusinesses.funds. Our structured lending solutions can be used to preserve equity. Increasingly, in these post-pandemic times, they are being leveraged for corporate activity as businesses focus on recovery, growth and expansion.c.118mFuMSee more on page 25.Value creation#OneMercia New investments Investmentthis year returns120 95 c.155mInvested and inspiredExperienced deal-doersRealised across 30 fullemployees ambitious across all of our or partial exit eventsfor long-term success asset classes'