Mercia Asset Management
Ticker: MERC Exchange: AIM www.mercia.co.uk/

Mercia Asset Management (Mercia) was founded in 2010 and listed on the AIM market of the London Stock Exchange in Dec 2014. It provides venture capital, private equity and debt investments to mostly regional (ex-London) UK businesses, investing between £100k and £10m. It manages c £1.7bn of funds for third parties and invests c£200m of its own capital alongside these funds.

Fund management pivot bears fruit: EBITDA +37%

A year ago, the Mercia 27 strategy was announced, which prioritised scaling the highly profitable fund management business and targeted EBITDA of c£10m by FY27 (£5.5m in FY24). Mercia is flying along. FY25 (to 31 Mar 25) has seen FUM (funds managed for 3rd parties) increase 10% y-o-y to £1.80bn (+46% over 2 years) and EBITDA jump 37% from £5.5m to £7.6m. Its net inflow rate has been the highest among London-listed peers for two years. 

Much of that FUM growth came from c. £250m of inflows in Q425 (existing mandate increases, new fund management contracts, and successful VCT and EIS fund raises), so the revenue benefit is still to come. Mercia is also finding further cost efficiencies. Our FY26 EBITDA forecast rises from £6.2m to £7.2m. Our fundamental value rises from 52p to 56p.

 

 
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