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Early evaluation shows Midlands Engine Investment Fund II is improving access to finance and supporting business growth across the Midlands

Partners and Programmes 13 October 2026

  • Independent evaluation finds the fund is performing well and operating broadly as intended. 
  • Strong evidence the fund is addressing regional finance gaps and improving access to finance for smaller businesses.
  • £50m invested through the Midlands Engine Investment Fund II by September 2025
  • 195 investments delivered to 180 smaller businesses across the Midlands by September 2025
  • The programme of six Nations and Regions funds had invested £294m in total, delivered across 951 investments to 877 businesses by September 2025.

An ‘Early Assessment Report’ undertaken by an independent research company has found the Midlands Engine Investment Fund II is helping improve access to finance for smaller businesses across the Midlands, supporting ambitious firms to grow, innovate and scale. 

By September 2025, the Midlands Engine Investment Fund II had provided £50m of investment to 180 businesses, helping to address local finance gaps and increase the availability of funding for smaller businesses.  

The evaluation found evidence that the fund is supporting companies that may otherwise have struggled to secure investment, while also attracting additional private sector finance into the region.

The most recent data published in March 2026 shows that the Midlands Engine Investment Fund II has now invested over £65m into 225 ambitious businesses and has invested across all areas within the Midlands Engine Investment Fund II geography.  

The findings form part of SQW Ltd's independent evaluation of the British Business Bank's wider £1.6bn Nations and Regions Investment Funds programme, which found that it is performing well across the UK. 

By September 2025, the Nations and Regions Investment Funds programme - which includes six funds across England and the Devolved Nations - had invested a total of £294m, which was delivered across 951 investments to 877 businesses.

It also attracted £233m of private sector investment, securing £0.79 of private sector leverage for every £1 invested. The funding is helping smaller businesses strengthen productivity, drive innovation and unlock growth. 

In the Midlands, the Midlands Engine Investment Fund II is supporting businesses across a broad range of sectors. Wholesale and retail trade accounted for 18% of firms supported, followed by Manufacturing at 15% and Professional Services at 13%.

In Nottingham, automation & robotics manufacturing company True Position Robotics received a £1m investment from the Midlands Engine Investment Fund II, managed by Mercia Ventures.

True Position Robotics is an industrial robotics company developing technology to automate aircraft assembly using low-cost, off-the-shelf robots enhanced with its own software and hardware. Its technology aims to make aircraft production more efficient and reduce manufacturing costs, with customers including BAE Systems through its Factory of the Future programme.

The Midlands Engine Investment Fund II investment enabled the business to scale its operations and continue research and development. The funding has supported the company’s growth into a larger-scale operation, strengthened its technology and increased its capacity to support the aerospace industry.

Roger Holden, CEO, True Position Robotics, said:

The investment from Midlands Engine Investment Fund II has been a real catalyst for the business. It has enabled us to bring experienced people into the team and grow our workforce from five to 20 employees, while also moving into premises four times larger than our original base in Nottingham.

The additional funding and support from the British Business Bank, since the initial investment, has given us the capacity to scale production and pursue new opportunities, including securing a significant order in India. We’ve had regular support from Mercia, the British Business Bank and other investment partners, which has been instrumental in helping us take the business to the next level.

The independent research also reported that, for the overall Nations and Regions Investment Funds programme, 81% of surveyed businesses would either have been unable to secure finance without the Nations and Regions Investment Funds or would have secured smaller loans or funding over a longer timeframe.
Businesses supported by the programme are already reporting improvements in productivity, innovation, workforce skills and growth, and many are more confident in accessing external finance and supporting future growth. 

Adam Kelly, Managing Director of Debt & Regional Funds at the British Business Bank, said:

This independent evaluation highlights the important role the Midlands Engine Investment Fund II is playing in supporting smaller businesses across the Midlands.

The findings demonstrate how the fund is helping businesses access the finance they need to invest, innovate and grow, whilst also helping to attract additional private sector investment into the regional economy.

While still at an early stage, it is encouraging to see strong evidence that the fund is supporting businesses that might otherwise struggle to secure finance and is helping create the conditions for long-term economic growth.

The six Nations and Regions Investment Funds evaluated were the Midlands Engine Investment Fund II, the Northern Powerhouse Investment Fund II, South West Investment Fund, Investment Fund for Scotland, Investment Fund for Wales and Investment Fund for Northern Ireland. 

Download report (.PDF, 5.8 MB)

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk. 

The Nations and Regions Investment Funds are supported by Nations and Regions Investments Limited, a wholly owned subsidiary of British Business Bank plc. They are not authorised or regulated by the PRA or FCA. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

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