A new report has revealed that businesses supported by private capital are contributing £19 billion annually to the Midlands economy, highlighting the critical role of private investment in fostering regional growth and development.
The study, conducted by The Midlands Economic Forum, examined the impact of private capital on sectors such as manufacturing, technology, and logistics. It found that businesses in these industries, which have received funding from venture capital, private equity, and other forms of private investment, have created thousands of jobs and significantly boosted economic output.
“Private capital has been a major catalyst for innovation and expansion in the Midlands,” said James Brooks, lead researcher of the report. “It has enabled businesses to scale up, improve productivity, and remain competitive on the global stage.”
The Midlands, historically known as the industrial heartland of the UK, has seen a surge in private investment over the past decade. This funding has allowed many businesses to modernize their operations, adopt new technologies, and expand into international markets.
Key sectors benefiting from private capital include automotive, advanced manufacturing, and green energy, which are expected to see further growth as additional investments pour into the region.
“The Midlands is becoming a hub for cutting-edge innovation,” said Sarah Mitchell, a partner at Capital Ventures, a firm that has heavily invested in the region. “The region offers a unique combination of skilled labor, infrastructure, and access to markets that make it a prime location for investment.”
The report’s findings are likely to fuel calls for greater regional investment and policy support aimed at further accelerating the Midlands’ economic growth. It also underscores the need for a stable and attractive business environment to continue drawing in private capital.
