£60m fundraising completed at venture capital firm

Regional investor Mercia Asset Management has completed a £60m new capital fundraising with three Northern Venture Capital Trusts.

Funds were raised through share offers launched last September and will be used to support SMEs, adding to Mercia’s £1.5bn worth of assets under management.

The Northern VCTs comprise Northern Venture Trust PLC, Northern 2 VCT and Northern 3 VCT.

It follows a big win for Mercia awarded both equity mandates for the British Business Bank’s £400m Midlands Engine Investment Fund (MEIF II), which gives them at least £163m to deploy over the next five years.

Investments increased by 39% in 2023 to more than £281m, with 77% directed outside of London as Mercia committed itself to bridging the funding gap across all regions of the UK.

Mark Payton, Chief Executive Officer of Mercia, commented: “I am delighted that the Northern VCTs have achieved a significant fundraise in the context of a more challenging fundraising environment.

“The successful £60.0m fundraise underscores the trust Mercia has built in managing the Northern VCTs, which remain a vital source of investment for SMEs navigating the current economic climate.