Midland firm Mercia Fund Management has launched a new growth fund combining its Enterprise Investment Scheme and Seed EIS operations.
The move comes after the introduction of Seed EIS (SEIS) and the marked enhancements to EIS in the Finance Act.
Mercia Fund Management believes a hybrid fund will provide investors with a combination of maximised tax efficiency and the flexibility to invest in either EIS or SEIS from the same fund.
The firm has a background in backing university spin outs as well as non-university investments such as LM Technologies through its first fund –Mercia Fund 1 – which partners both Warwick University and the University of Birmingham, gaining access to proprietary investment opportunities with protectable intellectual property.
Dr. Mark Payton, managing director of Mercia Fund Management said: “Mercia Growth Fund is perfectly positioned to help high earners seeking tax efficient investments. We see our new hybrid fund building on the successes of Mercia Funds 1 and 2 which have collectively invested in excess of £9 million and leveraged additional funding of circa £50 million in 34 businesses to date.”
The Mercia Growth Fund closes on October 31, but may close sooner if the investment target is reached.