World News: 07:04 GMT Tuesday 3rd December 2019. [Northern Venture Trust PLC via Globe Newswire via SPi World News]
NVM Private Equity LLP () has today announced the conditional sale of its venture capital trust (“”) fund management business (predominantly comprising three VCT fund management and advisory contracts relating to the Company, Northern 2 VCT PLC and Northern 3 VCT PLC (the )), to a subsidiary of Mercia Asset Management PLC (AIM: MERC) (“”), a proactive, regionally focused specialist asset manager (the "").
The Company has consented to the novation of its existing investment advisory agreement with NVM to Mercia, which is expected to become effective no later than 27 December 2019. No material changes are being made to the terms of the investment advisory agreement.
The NVM VCT management team, led by partners Tim Levett and Charlie Winward, will transfer to Mercia and will constitute a new VCT division within the Mercia group. A comprehensive agreement has been entered into between NVM and Mercia to ensure the smooth transition and continuation of the management and administration of the Northern VCTs. NVM will continue to provide accounting, company secretarial and administration services to all three Northern VCTs until at least September 2021.
Mercia is an AIM quoted asset management group, focused on making early stage investments in the UK regions, both from managed funds and directly from its own balance sheet. Mercia has around £500 million of assets under management and the acquisition of the management of the Northern VCTs will increase Mercia's total assets under management by over 50% to approximately £770 million.
After careful consideration and extensive due diligence, the directors of the Company (“the “”) believe that the change in advisory arrangements is a positive development for the Company and that it comes at the right time in the continuing evolution of the VCT sector. Mercia and NVM believe that the combination of NVM’s long established position as a successful investor and Mercia’s venture credentials will create one of the leading regionally based UK venture fund management groups. The Board has identified that the specific benefits to the Company will include:
The Board considers that the change in management and advisory arrangements is a positive development for the Company, and looks forward to working with Mercia to achieve a good investment performance for shareholders in the future.
Tim Levett, Chairman, NVM Private Equity, Tel: 0118 951 7000
James Bryce, Company Secretary, Northern Venture Trust PLC, Tel: 0191 244 6000
Neither the contents of the NVM Private Equity LLP website nor the contents of any website accessible from hyperlinks on the NVM Private Equity LLP website (or any other website) is incorporated into, or forms part of, this announcement.
Globe Newswire: 07:04 GMT Tuesday 3rd December 2019
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