Investment fund reaches £25m milestone
The £250 million Midlands Engine Investment Fund has reached the milestone of delivering supporting investment of £25m to the region’s businesses.
Fully launched in late February last year, the fund seeks to address regional imbalances in finance available to Midlands businesses.
Research from the British Business Bank in its Small Business Finance Market Report reported that only four per cent of equity finance deals completed in 2017 were in Midlands firms – demonstrating a need to make finance markets work better for small and medium-sized firms across the MEIF region.
The £25m invested so far, which includes £10m of private sector funds alongside finance from the MEIF, has supported more than 100 businesses, ranging from early stage technology start-ups to established manufacturing firms.
In the Black Country, a number of firms have received finance from the Midlands Engine Investment Fund. A highlight from this activity was the fund’s £750,000 investment in CFP Composites in Pedmore Road, Dudley – part of a £1.8m funding package supported also by private investor network Growthdeck. Provided by Midven, this MEIF finance has allowed the manufacturer to recruit more staff, while also help bring its next-generation carbon fibre panels to market.
Delivered by the Government’s British Business Bank, the MEIF forms part of a wider initiative to grow the region’s business community and local economy.
James Brokenshire, Communities Secretary and ministerial Midlands Engine Champion, said: “The Midlands is home to a huge number of innovative and creative businesses, and schemes like the Midlands Engine Investment Fund are helping them grow.
“A thriving Midlands Engine is vital to our modern Industrial Strategy which is why we are backing business in the region to create high-value jobs for the long-term.
“I am determined the Midlands becomes an even better place to live and work, helps deliver an economy that works for everyone and harnesses the opportunities presented by leaving the European Union.”
Investments from the MEIF are made by one of six appointed fund managers working across the East and South-East Midlands and West Midlands and supported by a network of Local Enterprise Partnerships. The £250m fund offers equity and debt investment between £25,000 to £2m.
Ken Cooper, managing director at British Business Bank, said: “The success of the Midlands Engine Investment Fund to date is the result of a collective effort. Using the expertise of our fund managers and with the support of LEPs and intermediaries we are improving access to finance and making a huge impact at local level.
“The diverse nature of firms supported so far has been a key achievement for the Fund, from trailer manufacturers to university spin outs developing stem cell treatments, all receiving the finance they need to grow their businesses. This journey is only just beginning though, and we encourage businesses from across the region to enquire to see how an MEIF investment could support their ambitions.”
The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
