Mercia celebrates £14m investment in over 50 Yorkshire firms

Investment group Mercia has hailed 2017 as a year of growth in a period which saw it invest more than £14m in over 50 companies in Yorkshire and the Humber.

It also opened new offices in Sheffield and Leeds and continued to expand its team. It now has 19 staff in the region, and has partnerships with the University of York and Sheffield Hallam University.

Mercia was appointed by the British Business Bank in February to manage more than £108.5m in new debt and equity funds from the Northern Powerhouse Investment Fund. In December it also announced the first closing of EV Growth II fund, having raised an initial £45.1m from institutions and private investors.

The new funds have helped to increase its third party funds under management from £220m at the start of the year to in excess of £350.0m as at 31 December 2017.

During the year Mercia rebranded its fund management subsidiaries, which include Enterprise Ventures and Mercia Fund Management, to Mercia Fund Managers.

Mercia’s investments in 2017 include Harrogate Water Brands, the bottled water producer; Leeds-based Smartgate Solutions, the healthcare compliance solutions provider; construction firm Westlinks and video advertising start-up Ash TV, both in Hull; Wakefield-based print equipment supplier Pinheiros Post Press; the Sheffield businesses Steps Rehabilitation, homewares manufacturer IC Innovations and auto technology firm Libertine; CB Information Systems of York which produces BinaryBots ‘smart toy’ robots; biomass fuel supplier VerdEnergy which operates from York, Richmond and Goole; and Huddersfield-based business software provider Adventoris.

Julian Viggars, head of technology investments, said:
“The increase in our activity in Yorkshire and the Humber shows how Mercia is succeeding in finding hidden value in the regions outside London. In 2017 we have increased our funds under management by over 50%, which means that we can direct even more investment to these underserved regions to create jobs and prosperity and generate returns for investors.”

Mark Payton, chief executive of Mercia Technologies, added: “During 2017 Mercia has continued to strengthen its presence in Yorkshire and the Humber, build its investment portfolio, its team and its network of university partners. The Government’s recent Patient Capital Review highlighted the importance of long-term investment to build the businesses of the future.

“Mercia’s Complete Capital Solution model does just that. By identifying innovative regional businesses with high-growth potential, and providing them with patient investment and practical support at each stage of the cycle, we can turn them into global players whilst delivering value for our shareholders.”