Midlands Engine Investment Fund reveals its first finance deals

Direct Digital Controls

The new fund designed to improve access to finance for firms within the Midlands Engine has paid out its first loans.

The Midlands Engine Midlands Engine Investment Fund (MEIF), which is supported by the European Regional Development Fund, has announced four growth deals in all.

The first has gone to Direct Digital Controls, in Brierley Hill, a business that specialises in the installation and maintenance of energy and environmental control systems.

It is using the MEIF investment to create four new jobs, support the training of an additional apprentice and expand its wired and lighting controls divisions.

Bob Taylor, director at Direct Digital Controls, said: “Securing finance from MEIF is a pivotal step in the future of our business growth, giving us the backing we need to expand and reach out to new customers UK-wide. Meaningful expansion requires extra talent and an investment in new business, we’re now ready to take the next step.”

In the East Midlands, Leicester-based BCME, owner of specialist education provider Echo Factory has received finance which will be deployed to market its degree-level music courses, maximising student numbers and empowering the institution to become self-sustaining.

Also, Nottingham-based medical devices company Olberon, has produced a cannulation device that is used in the medical industry. The funding will have a significant impact on commercial sales globally, by allowing them to develop existing links with distributors, and by helping them market more effectively.

The final payment goes to Milton Keynes-based Renewable ON, a clean energy specialist that supplies and installs bespoke solar powered LED outdoor and street lighting solutions to both public and private sector. Primarily the loan funds are required for cash flow including stock, wages and marketing to fulfil initial orders.

Nick Pulley, chair of the Midlands Engine Investment Fund’s Strategic Oversight Board, said: “It is heartening to see the first businesses tap into the opportunities presented by the Midlands Engine Investment Fund and having built a strong pipeline of deals, the fund is well set to accelerate this progress.”

The MEIF is delivered by the British Business Bank and the fund is investing £120m of debt finance and small business loans to eligible firms. This initial tranche of funding is part of a wider £250m of resource targeted towards the region’s start-ups, scale-ups and SME community.

The fund will invest in debt finance and small business loans, ranging from £25,000 to £1.5m, through appointed fund managers – Enterprise Loans East Midlands, BCRS Business Loans and Maven Capital Partners.

Pictured is Paul Kalinauckas, BCRS, (left) with Bob Taylor, Direct Digital Controls.

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