LONDON, UK: Mercia Asset Management announced a significant syndicated investment into existing direct investment portfolio company Locate Bio Limited, a Nottingham-based business developing a range of orthobiologics.
This investment into Locate Bio consists of a syndicated £10.0million Series A round in which Mercia has made a direct investment of £1.6million, alongside £4.0million from Mercia’s third party managed funds, which included EIS and VCT capital, together with £3.0million from BGF and £1.4million from other syndicate partners.
This funding round has increased Mercia’s fully diluted direct investment stake to 18.1%, with Mercia’s combined managed funds’ fully diluted stakes now totalling 24.6%. Locate Bio was initially backed in April 2018 by Mercia’s EIS funds.
Locate Bio’s products will be used by orthopaedic surgeons to accelerate the natural repair of bone and cartilage. Addressing a multi-billion pound global market, Locate Bio currently has four products going through trials, the first targeting formal market approval by 2022.
This £10.0million round will support the next stages of these trials including its lead bone graft solution (“LDGraft”) as part of the FDA approval process, as well as the development of additional products acquired last year.
Peter Dines, COO of Mercia Asset Management, said: “This significant investment round, alongside our continuing active approach to supporting the business and its management team, is another example of how our Complete Connected Capital can help accelerate growth, with investment not only by our balance sheet but also by our managed funds and syndicate partners. As Mercia’s representative on the Locate Bio board, this latest investment is testament to the significant potential market value and global reach of the products Locate Bio is currently developing.”
Mercia Asset Management is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’.
The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.