The Mercia EIS Fund is a diversified venture capital portfolio, wrapped within an EIS fund, which offers strong downside protection and the upside is not limited by capital gains tax.
We aim to triple invested capital in five to seven years, including tax reliefs. We will achieve this by investing at seed and early stage, expecting failures and targeting high multiple returns in some companies (10x or more).
The Mercia group is one of the largest (£800m) and most respected early-stage investors in the UK, and we currently have £300m to invest. We focus on investing outside of the South East of England, as we find much improved valuations, and we have a track record of exits (returning over £300m).
The Mercia group is focused on realising value.
The natural exit window in the UK is between £25m-£50m, and we invest at a seed or early-stage that enables Mercia to achieve the multiples required to deliver the portfolio level returns in 5-7 years.
There are two standard exit routes for EIS managers, exiting via
Trade sale; Mercia has done circa 50, including a 26x in Allinea
Stock market listings; Mercia has been involved in 11 IPOs, including BluePrism delivering 104x.
Mercia can provide additional liquidity mechanism in some circumstances.
Mercia aims to exit companies in a valuation range of between £25m-£50m, which is the most common in the UK, but we have built big companies (BluePrism £1.8billion in Sept 2018). There are already rapidly growing companies in the EIS portfolio which could exit for over £50m, delivering an exit of over 25x cost, providing fund-level returns well in excess of our target.
Date of exit
Share purchase price
Share exit prices
(net of reliefs)
4.8x (6.9x net)
Equivalent of £1
Equivalent of £104
8.6x (12.3x net)
Mercia Asset Management has £0.8billion AuM and is recognised as the leader in UK focused, early-stage technology investments.
Investor (including VAT)
Variable, as negotiated with company (average 2.5%, but waived in many cases)
2.1% (payable for six years)
20% over £1
Other fee information
0.25% annual custodian fee (payable for six years), and 0.35% transaction fee
Board directors’ fees, as negotiated with company
For further information please do not hesitate to contact us on: