Private Capital makes a £19bn contribution to the Midlands economy
A new report has found that businesses backed by private capital generate £19bn for the Midlands economy each year.
Private Capital in the Midlands which is being launched by the British Private Equity and Venture Capital Association (BVCA) in Birmingham today, showcases the industry’s importance to growth in the nations and regions of the United Kingdom.
In 2024 alone, private capital invested £1.18bn into businesses in the Midlands. Private capital employs an active ownership model which is a hands-on approach that helps drive value creation in portfolio companies through strategic and operational improvements, whilst supporting wider economic development.
As of 2025, private capital supported 905 businesses in the region, a 15% increase compared to 2023. Venture capital firms are playing a significantly larger role in the Midlands economy compared to a couple of years ago, backing 455 businesses, around 20% more than in 2023. Private equity currently backs 250 businesses in the region consistent with 2023. These businesses are major employers in the region, supporting over 302,000 jobs in the Midlands – a 32% increase compared with 2023.
As part of the report, the BVCA also made a number of recommendations to the government and local policymakers. This includes:
The BVCA recommends increasing proof-of-concept funding and introducing enhanced support measures such as high-quality entrepreneurship training and improved collaboration between academia and investors. These actions would help to overcome commercialisation delays and ensure regional spin-outs receive the necessary support.
The BVCA highlights the need for skills development initiatives like the West Midlands Digital Skills Consortium, which can improve the investment climate and leverage regional strengths in key sectors such as manufacturing and digital technology.
The BVCA recommends that the Apprenticeship Levy should be opened to fund non-apprenticeship programs, focusing on STEM skills to create the domestic workforce needed for the economy of the future. Where there is a skills shortage, British visas for top global talent should be simplified with clear criterion for recruiting talent into portfolio companies that recognise the role of venture capital and growth equity.
The new report is launching at the BVCA’s Invest Midlands Forum. The forum, which is sponsored by Aon, will feature discussions on supporting scale ups and spin outs, and how local leadership and planning reforms can make the Midlands a more attractive destination for investment.
Commenting, BVCA chief executive Michael Moore said: “The Midlands is an exciting destination for private capital, whose investment is supporting the development of over 900 businesses in the wider region. These businesses bring real value to local communities through the 302,000 jobs they support.
“However, while there is much to celebrate about the scope and scale of investment in the region’s businesses, it could be even more substantial and close the gap with other parts of the country. Policymakers, regulators, and industry all have a role to play in helping to facilitate greater levels of investment in the region, to ensure that opportunities are not lost.”