Yorkshire & Humber investments up 46% at SME capital provider
Mercia Asset Management – a capital provider to SMEs – has reported a bumper first half, with the amount invested in Yorkshire and Humber businesses up by 46% compared to the first six months of 2022.
Mercia, which has offices in Leeds, Sheffield and Hull, has completed 50 investments totalling almost £20m in the region in the six months to the end of June this year, compared to 34 investments totalling £13.7m during the same period last year.
Key investments during the six months included Sitehop, a Sheffield company with a new encryption solution for telecoms and data networks; Invincibles Studio of Leeds, which is behind the football game Soccer Manager; Eventum Orthopaedics, an Ilkley MedTech company with a device that could improve the success of knee replacement surgery; The One Point, a Hull company which provides managed IT and telecoms services and Toyland, an Otley-based toy shop chain.
Mercia manages a range of third-party funds including the Northern Powerhouse Investment Fund (NPIF) across Yorkshire and Humber.
It raises its own EIS and VCT funds, and invests directly in some businesses from its own balance sheet.
Over half of the funding it provides is in the form of venture capital to early-stage and growth businesses, with the remainder predominantly in differing forms of loan finance.
Mercia, which has a nationwide network of 11 offices, invested £94.6m in total in the first half, up from £76.7m in the first half last year. Of the total, 85% went to firms outside of London, in line with its mission to address the funding gap in the regions.
Will Clark, managing director of Mercia Ventures, said: “Despite the flatlining economy, we have we have increased both the value and volume of investments in Yorkshire and Humber during the first half of 2023.
“We believe the regions hold great opportunity if you know where to look.
“With three offices across Yorkshire and Humber and a team of local fund managers, we are very much embedded in the region and have a track record of identifying rising stars and supporting them to scale and grow, while achieving returns for investors.
“The combination of funding we provide, which includes the use of British Business Bank’s regional funds alongside private investment, has been transformational for regional businesses.
“It is helping to attract external funding, build thriving start-up communities with a support network of advisers and create a sustainable environment for business growth and job creation.”
