The finance will be made available to SMEs across the West, East and south-east Midlands.

“The Midlands Engine already boasts over 14% of the UK’s high-growth businesses and its economy is worth more than £230bn – larger than countries like Denmark,” said Sajid Javid MP, housing secretary and ministerial champion for the Midlands Engine.

“We want to harness its huge potential and help give small firms across the Midlands that much-needed boost to grow their business.

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“Ensuring every part of the UK can play to its strengths and spread prosperity is central to our industrial strategy, and this fund will not only generate jobs to benefit the entire Midlands but, ultimately, the British economy.”

Patrick Magee, chief commercial officer at the British Business Bank, added: “[Last] Tuesday [20^th February], the British Business Bank’s Small Business Finance Market report revealed significant regional imbalances in the supply of equity finance across the UK. 

“We believe there is a major opportunity to increase the supply of equity finance in the Midlands, and to enhance the growth ecosystem.

“The British Business Bank already supplies £1.2bn of finance to Midlands businesses and the Midlands Engine Investment Fund will provide more in the most needed areas.

“The launch of the Midlands Engine Investment Fund’s equity finance will help to grow the region’s access to funds to support its economic potential and collective talent.

“I encourage Midlands businesses looking to take the next step in their growth journey to connect with our three fund managers to see how equity finance could benefit them.”