Mark Payton, managing director at Mercia Fund Management

MFM announces over-subscription to the SEIS portion of Mercia Growth Fund 1

Mercia Fund Management (MFM) has announced an over subscription to the SEIS portion of its Mercia Growth Fund, less than three months after the fund’s launch.

The Mercia Growth Fund, a hybrid fund offering both Seed EIS (SEIS) and later stage EIS investments, was launched to investors at the end of August and has already achieved its fund raising targets.

The SEIS portion of the fund will co-invest alongside MFM’s other funds under management into spinout opportunities from MFM’s eight partner universities, as well as more broadly across the UK into capital efficient, scalable businesses seeking modest capital support.

The EIS portion will be invested into more mature businesses seeking modest expansion or working capital. Many investors have invested across both elements of the fund seeking a blend of tax reliefs (available through SEIS and EIS) and target returns.

Mercia’s Growth Fund is now inviting approaches from advisers of SEIS-qualifying companies seeking investment funding of up to GBP150,000.

Mark Payton (pictured), managing director at Mercia Fund Management, says: “Thanks to our strong track record of identifying investable companies and established links with universities, which are a valuable source for SEIS-qualifying companies, our Mercia Growth Fund has exceeded all expectations.

“Achieving the GBP1m SEIS target so soon is a testament to a growing interest in SEIS Funds following approval by the government in July. Our hands on support and SEIS investments will help build the revenue base of businesses and university spinouts to the advantage of investors and the broader UK economy alike.

“Following our impressive success with Mercia Growth Fund 1, we are thus preparing to launch the Mercia Growth Fund 2 in the New Year to satisfy both growing investee demand and investor appetite for such a balanced product.”

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