Blue Prism delivers 55x ROI for RisingStars Growth Fund

Julian Viggars of Mercia Technologies

The RisingStars Growth Fund, which is managed by high growth tech investment group Mercia Technologies, has completed another cash realisation from Blue Prism Group plc, giving it a total 55x return on the fund’s original investment.

Blue Prism, a robotic process automation company based in Newton-le-Willows, Merseyside, listed on AIM in March 2016 with a market capitalisation of £49m. Today, it is valued at more than £600m.

The RisingStars Growth Fund originally invested £900,000 and has to date had £49.1m returned, with a 4.9% stake remaining in the business which is yet to be realised.

The fund is managed by Enterprise Ventures, which was itself acquired by listed Mercia in March 2016.

As with many of Mercia’s managed funds, the Group will benefit from a modest profit share/carried interest. Mercia does not have a direct stake in Blue Prism as the Fund’s investment occurred prior to Mercia’s acquisition of Enterprise Ventures.

Julian Viggars, head of technology investments at Mercia Technologies PLC, who has been personally involved with Blue Prism since the early seed rounds in 2004, said: “Our support of Blue Prism illustrates the use of patient capital at its best as it was identified by our team at an early stage in 2004.

“Blue Prism’s market capitalisation has risen by more than 12x since listing, generating significant returns for the Fund which has retained a holding and we will remain a supportive investor as the company continues to grow its market leading position.”

As part of this realisation, £49.5m has been returned to the Limited Partners, including £26.2m to the UK Government – 2.6x its original investment – managed through the British Business Bank.