LONDON (ShareCast) - (ShareCast News) - Mercia Technologies, which funds technology businesses, has won two contracts to manage the British Business Bank's new Northern Powerhouse Investment Funds worth £108.5m.
The AIM-listed company, through its subsidiary Enterprise Ventures, has secured a £57.5m equity fund and a £51m debt fund to invest in SMEs in Yorkshire, the Humber and Tees Valley regions.

This is part of the Northern Powerhouse Investment Fund, which is supported financially by the EU, including investment from the European Regional Development Fund as part of the European Structural and Investment Funds Growth programme 2014-20, and the European Investment Bank.

As a result of the two contracts, Mercia has increased its third party funds under management by nearly 50% to over £336.5m, which would grow its pipeline of potential direct investment opportunities.

Chief executive Dr Mark Payton said that Mercia is well placed to invest and develop small businesses in the North of England as it has already helped similar public and private funds, including Blue Prism Group, Optibiotix Health, Xeros Technology Group and Concepta.

"Mercia's strategy is to create value for its shareholders and investment clients by finding and funding innovative businesses in the UK regions, initially by investing the third party funds and subsequently by taking direct stakes in 'emerging stars' as they successfully scale up. These two new funds will further strengthen Mercia's ability to generate attractive returns for both managed fund investors and shareholders."

Shares in Mercia Technologies were up 3.23% to 48p 1003 GMT.

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