Is Mercia Asset Management set for success?

Mercia Asset Management helps the government fund smaller companies in Britain’s regions. Should you invest?

Rachel Reeves Makes First Official Visit As Minister of State
(Image credit: Getty Images)

The Labour Party is eager to kick-start growth. A key part of its plan is the so-called National Wealth Fund, spearheaded by chancellor Rachel Reeves. It will see £7.3 billion of additional government funding diverted into the three-year-old UK Infrastructure Bank. In addition, reforms will be made to the British Business Bank, an often-overlooked success story. 

Founded in 2014, the British Business Bank has provided more than £12 billion to smaller British businesses via equity and debt. It has been a key means for the government to channel funding to businesses. Earlier this year, it launched the Northern Powerhouse Investment Fund II, a £660 million fund designed to build on the success of the first Northern Powerhouse fund by providing loans from as little as £25,000 to businesses in the North, as well as the £400 million Midlands Engine Investment Fund II. The British Business Bank does not invest these funds directly. Instead, it relies on third-party fund managers, one of which is Mercia Asset Management (Aim: MERC).

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.