Lord Adebowale with leaders from Kindred, Liverpool City Region Combined Authority, and Social Investment Business

A place-based social investment fund with the ambition to mobilise £50 million over seven years has been announced for the Liverpool City Region, with Social Investment Business agreeing in principle to act as its fund manager.

The Social Investment Pathfinder Fund aims to transform access to finance for social enterprises and community organisations across the city region, with a particular focus on founders and organisations underserved by mainstream finance, including Black-led and other underrepresented enterprises. It is expected to launch later this year, following final approvals.

The Fund will invest across three connected areas:

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• early-stage blended finance for new and emerging enterprises
• scale-up investment for organisations ready to grow
• and a dedicated land and property vehicle designed to enable greater community ownership of assets.

Implementing the Adebowale Commission’s recommendations

The initiative puts into practice the recommendations of the Adebowale Commission on social investment, which reported in 2022. Lord Adebowale, patron of the Pathfinder, has described the model as a “proof of concept” for locally governed but nationally connected capital, with lessons for the rest of the UK.

The Fund has been identified as a delivery mechanism for inclusive prosperity within the Liverpool City Region Growth Plan. At a national level, discussions are progressing with the government’s Office for Impact Economy to establish the region as an Impact City Region.

‘A critical milestone’

Erika Rushton, Director of Strategy at Kindred Liverpool City Region, the community interest company behind the initiative, said:

“Social Investment Business brings a strong national track record in delivering social investment funds and a deep understanding of regional ecosystems. Their involvement will support the management of Pathfinder’s financial architecture, combining compliance and robust governance with locally accountable investment across the Liverpool City Region.”

Nick Temple, CEO of Social Investment Business, said the organisation looked forward to building “the best possible partnership between local expertise in the city region with our own national infrastructure and capacity”. SIB has deployed over £800 million in loans and grants since 2002, supporting more than 6,000 charities and social enterprises.

Further announcements will follow as fundraising progresses and formal agreements are finalised. More information is available from Social Investment Business and Kindred.