Midlands Engine Investment Fund II invests £17 million into the region’s businesses
The British Business Bank’s Midlands Engine Investment Fund II has committed over £17m in the Midlands in its first nine months, leveraging a further £10m from the private sector to help the region’s small and medium-sized businesses to start up, scale up or stay ahead.
A total of 70 businesses have received support through the Midlands Engine Investment Fund II since its launch in February 2024.
The £400m Midlands Engine Investment Fund II covers the whole of the Midlands and provides debt finance from £25,000 to £2m and equity investment up to £5m to help small and medium sized businesses.
Five dedicated fund managers – First Enterprise - Enterprise Loans, BCRS Business Loans, Mercia Ventures, Frontier Development Capital (FDC), and Maven Capital Partners – manage separate parts of the £400m fund.
Cheese manufacturer and wholesaler Nantwich Cheese, from Shropshire, and digital marketing and brand agency Exesios in Staffordshire are among those who have been supported by the fund.
Jody Tableporter, Director UK & Regional Funds, British Business Bank, said: “This funding milestone of £17m to 70 businesses, achieved in only nine months, indicates that Midlands businesses are ready to take on capital to help them achieve their ambitious growth plans.
“This demand from businesses across very different sectors, from manufacturing and technology to retail, logistics and renewable energy, showing the incredible diversity of the business base we have here in the Midlands.
“The Midlands Engine Investment Fund has also acted as a catalyst for private sector investment - helping to secure a further £10m, bringing the total investment into Midlands businesses to £27m. It is clear that this is just the beginning for the fund and the ambitious firms that access it.”
To find out more about the Midlands Engine Investment Fund II and apply for funding through the regional fund manager partners, visit https://www.british-business-bank.co.uk/finance-options/nations-and-regions-investment-funds/midlands-engine-investment-fund-ii
In August, it was reported Nantwich Cheese had secured £1 million in debt funding from the Midlands Engine Investment Fund II, through its appointed fund manager Frontier Development Capital (FDC).
The business supplies the catering and hospitality industries, schools, hospitals and food manufacturers and also makes products for retailers including Aldi’s ‘own label’ range of waxed cheeses.
The company sources cheese from British and continental producers then processes and packs it at its Whitchurch plant.
It currently employs 31 people, having recently taken on eight new recruits, and expects to create five more jobs in the year ahead.
Luke Morgan, CEO, said: “The funding will provide us with working capital to fulfil the growing order book and continue expanding the team."
