Mercia Ventures Secures Top Position in Midlands Engine Investment Fund II

By Anushka Malhotra

1 minute 21 seconds

Investment

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Quick Read: Mercia Ventures secures a dominant position in the Midlands Engine Investment Fund II, obtaining both equity mandates, and is set to deploy a substantial amount of capital over the next five years, marking a crucial moment for regional business investment.

Mercia Ventures emerges as the primary beneficiary in the allocation of fund managers for the new £400 million Midlands Engine Investment Fund (MEIF II), securing both equity mandates. With a substantial increase from its role in the original MEIF, Mercia Ventures is poised to deploy a minimum of £163 million over the next five years, signaling a pivotal moment for regional business investment.

In a notable shift from its proof-of-concept mandate in the first MEIF, Mercia Ventures, a prominent regional business investment specialist, is entrusted with the task of steering both equity mandates. Under the leadership of Julian Dennard, the team will have an initial £80 million to invest in equity stakes in West Midlands companies. Simultaneously, Sandy Reid will head a separate team with £83 million, covering the East and South East Midlands.

Reflecting on their strategy, Julian Dennard, Fund Principal at Mercia Ventures, emphasized their commitment to backing companies with significant ambitions, aiming to bring about transformative change on a substantial scale. Drawing from the lessons learned during the first fund, Mercia Ventures aims to be disciplined in stock selection, demonstrating a focus on the stage of investment and building robust syndicates.

Noteworthy successes from the previous MEIF include the investment in clinical services tech firm C7 Health, which achieved a remarkable 14x return on investment when sold four years later. The invaluable experiences garnered from the first fund are anticipated to play a crucial role in shaping the investment strategy for MEIF II over its five-year period.

Dr. Mark Payton, Chief Executive of Mercia Asset Management, expressed confidence in their investment track record and staff, highlighting their established regional footprint and networks that position them to effectively deploy the capital needed to support the growth of regional companies.

This development marks a significant stride for Mercia Ventures, solidifying its role in driving regional growth and reinforcing its position as a key player in the evolving landscape of business investment.

What's new

West Midlands Health Tech Innovation Accelerator Unlocks Nearly £50M in Private Investment

The West Midlands Health Tech Innovation Accelerator (WMHTIA), led by the University of Birmingham, has generated an impressive £49.4 million in private co-investment within its first two years, significantly surpassing its original £14.5 million public funding allocation.

Funded through the Innovation Accelerator programme, coordinated by Innovate UK, the Department for Science, Innovation and Technology, and UK Research and Innovation, WMHTIA has become a leading force in advancing health technology innovation across the region.

The majority of the private investment—£36.3 million—was directly committed by investors to enterprises supported by the Accelerator. This achievement represents a threefold return on the initial public investment, demonstrating the strong investor confidence in the region’s health tech sector.

Powering Health Innovation Through Collaboration

The WMHTIA brings together 21 partners from academia, industry, and the NHS to help healthtech companies develop, validate, and commercialise cutting-edge medical technologies. So far, companies supported through the programme have also secured an additional £10 million in national public grants from agencies including NIHR, Eureka, and Innovate UK.

Including both public and private contributions, the total investment leveraged by WMHTIA now stands at £67.3 million.

Professor Adam Tickell, Vice-Chancellor, University of Birmingham:

We’re proud to support startups through the riskiest stages of innovation so more life-saving technologies reach patients. This exceptional investment proves what’s possible when academia, the NHS, and industry work together to drive economic growth and better health outcomes.

In March 2025, the Innovation Accelerator programme was extended with a further £30 million, including £4 million for the WMHTIA to continue supporting the region’s innovators in 2025/26.

Backing the Future of Health Tech

Richard Parker, Mayor of the West Midlands:

The West Midlands is leading medical tech innovation—from faster diagnoses to shorter hospital stays. Healthtech isn’t just improving lives; it’s creating secure, high-value jobs that drive inclusive growth.

Dean Cook, Executive Director of Place and Global, Innovate UK:

This programme shows how place-based innovation can unlock greater business investment in R&D. By connecting the region’s strengths, we’re creating high-value jobs and building globally significant innovation capability.

The WMHTIA continues to strengthen the region’s reputation as a national hub for health technology, with far-reaching benefits for patient care, job creation, and regional economic development.

By Anushka Malhotra

24 Jun