Mercia Technologies raises £45.1m fund to invest in ambitious Northern businesses

EV Growth II will invest up to £5m per round in established and ambitious small firms with a focus on management buyouts and replacement capital

Mercia Technologies, the venture capital fund that specialises in boosting the UK’s ‘Northern Powerhouse’ by investing in businesses in the Midlands and the North of England, has closed a £45.1m fund.

Backed by institutions and private individuals, including three Mercia team members, who will be responsible for managing the new fund, EV Growth II will invest up to £5m per round in established and ambitious small firms with a focus on management buyouts and replacement capital.

Led by Wayne Thomas, the fund will have a specific focus on businesses based in the North of England.

The Mercia team will also work with operational partners Warwick Ley and former BVCA UK CEO of the year, Brian Davidson, who have both made individual commitments to the fund.

Jonathan Diggines, executive director of Mercia Technologies PLC, who has been instrumental in raising the EV Funds said:

“EV Growth II will be investing in some of the most dynamic businesses in the UK regions, particularly in the North of England, which is one of Mercia’s core investment regions.

“We will typically take minority positions alongside the management team so that we can work together to generate growth and deliver attractive returns for management and for Fund investors.”

Wayne Thomas, fund manager of EV Growth II, said:

“The first Growth Fund demonstrated that we can identify, fund and help build outstanding businesses, run by extremely capable and ambitious management teams.

“Our experience, over many years investing in small businesses in the UK regions, shows that, to unlock growth and value, a business needs not just access to capital, it also needs strategic input and a patient, long term management approach, values which are fundamental to Mercia’s investment ethos.”