Investing to support local growth and regional businesses

We are proud to announce a £40 million commitment to the FDC Evolution Fund, reinforcing our support to drive sustainable economic development across local communities.

Our investment will provide flexible debt capital to small and medium-sized enterprises (SMEs), supporting their growth and helping them improve their sustainability. Investments will channel capital into the Midlands and the North of England, offering funding solutions ranging from £1 million to £8 million to established businesses with proven performance, growth ambition, and strong leadership.

Our investment supports local economies while aligning with our long-term investment objectives - securing pensions for our members by generating attractive returns in a manner consistent with our responsible investment values.

We’re excited to build on our existing partnership with Frontier Development Capital (FDC) and the British Business Bank as the other founding investor in this fund. We look forward to the continued support from LGPS Central Ltd as our investment pooling partner, who assisted us throughout the due diligence process and will provide oversight of the investment going forward. This collaboration highlights the value of investment pooling within the LGPS, helping to deliver positive outcomes for our members, employers and the local economy.

Please see the links below for more information on this investment and other examples of how we are investing to support the growth of our local economy.

• West Midlands Pension Fund backs new £81.5 million debt fund to boost regional SMEs - LAPF Investments
• Inicio AI secures £2.6 million Seed Investment from investors including Midven – UK Tech Investment News by Deal Lite
• Businesses reflect on growth since being backed by the West Midlands Co-Investment Fund | Insider Media