Private equity group Bridge-point Capital is pulling out of Birmingham in another blow to the financial services sector.
It follows the decision of 3i to quit nine months ago.
Bridgepoint says it believes it can cover the West Midlands perfectly well from London.
It intends to concentrate its efforts on the European market. The Birmingham office comprises Adrian Willetts, director in charge, and investment director Colin Burrow.
Both were offered relocation to London but are "taking the opportunity to look at other things".
Mr Willetts added he was hoping to stay in the Midlands but was "not ruling anything in or anything out".
Bridgepoint has had an office in Birmingham for around 25 years.
Based in Church Street, it has invested more than £100 million in ten businesses in the Midlands since 2000.
Recent deals have included the management buyout of Telford group Western Wines and the take private of Mentmore-Safestore. The office closes on March 31.
Bridgepoint is a mid market operator handling businesses in the £50 million to £350 million range.
But it is now re-allocating its resources to the European market. Mr Willetts said: "We believe we can cover the UK from London."
He said that was the trend in the sector and also in other European countries where retrenchment to the capital city had also taken place. "It is increasingly what is happening."
Other Midlands deals the company has been involved with down the years have included Betterware, Adams Childrenswear and Concentric.