West Midlands announces plans to invest £1.1bn in the region
Author: LAPF Investments | Published: March 27, 2026
The West Midlands Pensions Fund has said it aims to allocate up to £1.1bn to investments within the region over the next six to eight years.
Representing five percent of the fund’s assets under management, the decision forms part of the fund’s long-term investment strategy and follows approval of its updated Investment Strategy Statement.
As part of this work, the fund is working closely with the West Midlands Combined Authority (WMCA), which will identify and shape investable opportunities aligned with the region’s growth plan, and will be underpinned by a memorandum of understanding between the two organisations.
Rachel Brothwood, executive director of the West Midlands Pension Fund, said: “This is a clear, long-term target for local investment as part of our investment strategy statement.
“It is grounded in fiduciary duty and informed by advice and evidence. Every opportunity will be assessed against the same standards we apply across the whole portfolio, including risk, return, due diligence, and governance.
“Working with WMCA will help strengthen the pipeline of investable opportunities, but the fund and our pooling partner will always make independent investment decisions in line with our fiduciary duty to members and employers.”
The fund has said it expects this local investment will primarily go into private market opportunities such as housing and real estate, infrastructure, and financing for businesses.
Mayor of the West Midlands Richard Parker said: “This is a massive vote of confidence in the West Midlands. By setting aside £1.1bn for local investment the pension fund is supercharging my growth plan by backing our key industries and businesses.
“The fund has an obligation to protect its members’ money and deliver best value for them, so this commitment really is testament to our region’s strength as an investment prospect.
“This agreement means more of the wealth generated by fund members stays here to benefit our communities, create high-quality jobs and build the essential infrastructure we need to drive the region forward.
“By combining the fund’s financial power with our long-term vision we are building a region that works for everyone.”
Local opportunities will be assessed and implemented through its pooling partner LGPS Central, which will directly or through delegates conduct detailed due diligence and make final investment decisions on any opportunity, as well as executing investments and providing ongoing financial and impact reporting.
The fund will maintain active oversight and challenge the pool on investment performance, progress against milestones, and delivery of expected place-based benefits.
