Regionally focused investor Mercia Asset Management has raised £60m across three northern venture capital trusts (VCTs).
The VCTs, which direct investment into the North of England, launched an initial share offer for £42m in September, with an overallotment option of £18m.
“I am delighted that the Northern VCTs have achieved a significant fundraise in the context of a more challenging fundraising environment,” said Mercia chief executive Mark Payton.
“The successful £60m 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.”
VCTs are investment companies listed on a stock exchange. They provide investments to unlisted companies and receive tax relief.
Mercia Asset Management took over Northern Venture Trust and Northern 2 VCT from NVM Private Equity in 2019.
The VCTs invest between £1m and £12m in early and late-stage companies in the north.
Based in Warwickshire, Mercia Asset Management specialises in investing across UK regions. Last year, the group said 85% of its capital went to businesses outside of London.
“Mercia was founded in 2010 to bridge funding gaps across the UK. Despite regional disparities, we have been able to pick winners throughout the UK and we are trusted time after time by investors and business founders,” Payton said.
In total, the group manages around £1.5bn in assets.
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