Growth fund delivers 55x return on Rising Star investment

Julian Viggars, CIO of Mercia Asset Management and nDreams' Board Director

Mercia Technologies has achieved a 55x return on its investment in a robotic process automation company while one of its managed funds still holds a 4.9% stake.

The high growth technology investor has completed another cash realisation from Blue Prism Group, based in St Helens.

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 lHenley-in-Arden-based Mercia in March 2016 and is shortly to rebrand under the Mercia name.

Blue Prism listed on the Alternative Investment Market in March 2016 with a market capitalisation of £49m and it now valued at more than £600m.

Julian Viggars, head of technology investments at Mercia Technologies, 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.

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.

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