New Place-Based Prosperity report sets out roadmap to unlock institutional investment for Midlands growth

A new report commissioned by the Midlands Engine sets out a practical roadmap to unlock long-term, socially responsible institutional investment in support of inclusive and sustainable growth across the Midlands.

Developed by The Good Economy, Place-Based Prosperity – the institutional investment roadmap for Midlands growth outlines how local leaders, pension funds and investors can work together to channel capital into regional priorities – including infrastructure, innovation, SME finance, housing and the transition to net zero.

Drawing on lessons from across the UK – including Greater Manchester – the report calls for stronger alignment between local government, the Local Government Pension Scheme (LGPS) and private investors, with a focus on building an investor-ready pipeline of projects matched to the needs of place.

The roadmap is underpinned by extensive consultation with local and combined authorities, developers, investors and LGPS funds. That process revealed both a strong appetite for collaboration and a clear need to build local capacity, strengthen investment propositions and improve transparency around economic, social and environmental outcomes.

A critical opportunity for the Midlands

The Midlands faces long-standing structural challenges – including a £97bn output gap with the rest of England – alongside new opportunities created by changes to LGPS investment rules and the wider devolution agenda.

With over £50bn in potential investment opportunities already identified and nationally significant strengths in sectors such as advanced manufacturing, digital tech, health, agri-food and clean energy, the region is well placed to attract institutional capital at scale. But to realise that potential, a more strategic and place-sensitive approach is needed.

A roadmap for place-based impact investing

Place-Based Prosperity makes the case for applying place-based impact investing (PBII) principles at scale across the Midlands – aligning institutional capital, especially from pension funds, with regional priorities that deliver long-term returns alongside meaningful local impact.

The report recommends action in four areas:

• Strengthening collaboration between local authorities, LGPS funds and institutional investors
• Building investment readiness and capacity within local government
• Aligning LGPS strategies with regional priorities
• Improving data, transparency and impact tracking to increase investor confidence

A lasting legacy for future investment

As the Midlands Engine winds down its operations following the cessation of government funding, this report offers a shared proposition to guide future collaboration and investment across the region.

Sir John Peace, Chairman of the Midlands Engine, said:

“This seminal report – commissioned by the Midlands Engine Partnership and eight months in development – draws on a broad range of evidence, including the voices of local government, investors, developers and others. It makes the case for a strategic, place-based approach to investment that reflects the specific conditions of the Midlands, demonstrating how targeted funding can unlock economic resilience, social equity and environmental sustainability.”

Sam Monger, Head of PBII at The Good Economy, added:

“It has been an honour to work with stakeholders across the Midlands to map out the opportunity to apply place-based impact investing at regional scale. We now look forward to seeing these insights translated into practical action that improves the lives of local communities.”

Read the full report
Read the executive summary