Pioneering £25 million investment fund launched to help grow region’s industries of the future

A ground-breaking investment fund was launched today (21 March 2023) to provide innovative businesses with equity of up to £1m, helping them to expand and grow the region’s industries of the future.

The West Midlands Co-Investment Fund, totalling £25m, has been set up by the West Midlands Combined Authority (WMCA) in partnership with West Midlands Pension Fund to support small and medium sized enterprises (SMEs).

Investments will be focussed on SMEs that offer high-growth potential and the ability to help supercharge the regional economy.

The investment partnership will look to invest in SMEs across a variety of sectors including green technology, advanced manufacturing, life sciences and creative and digital, helping them to scale up operations.

The WMCA is putting £12.5m into the fund and this is being matched by West Midlands Pension Fund. It will be managed by Midven, part of Future Planet Capital, through an investment team.

Operating over a 10-year period, the fund will focus on bringing new private investor money to the region and, using a co-investment model, will invest alongside business angels and other private sector investors on a minimum £1 to £1 basis.

The goals of the WM Co-investment fund are closely aligned to the region’s WMCA #WM2041 net zero ambitions and to its Plan for Growth which was launched last year to help supercharge the economy in the wake of the pandemic.

The WMCA and West Midlands Pension Fund have set up the West Midlands Co-investment fund in recognition of the pivotal role that high growth potential SMEs have to play in accelerating the regional economy.

SMEs also create remarkably high value for the West Midlands, mainly in the form of jobs, technological development and in attracting investment from other regions or countries.

As a result, the fund could generate an extra £49m for the regional economy and create or secure nearly 800 jobs.