The Pathway Fund was founded in 2022 to catalyse opportunities for Black and Ethnic Minoritised communities across the UK, through impact investment. We intend to raise a £65m-£100m fund, responding to the Adebowale Commission’s recommendation on the need for – and associated social and economic benefits – of creating a Black-led Social Investment wholesaler fund in the UK.
We will do this in three ways; firstly, we will unlock large-scale investment into our target communities. Second, we will influence the mainstreaming of racial equity in UK finance impact investing. Third, we will deliver impact to our target communities, and ultimately wider society. A rising tide lifts us all.
To achieve this, our core activities are to:
- Provide grant funding and blended financing to address barriers faced by enterprises led by and serving Black and Ethnic Minoritised communities in accessing finance to fund and grow their activities, and in acquiring community assets;
- Catalyse further investment into Black and Ethnic Minoritised communities by de-risking investments through blended finance and crowding in new investors;
- Influence the UK impact investing sector on the agenda of racial equity, through sharing of best practices and data setting of standards, and supporting emerging Black and Ethnic Minoritised leaders in the sector.
Our vision is for Black and Ethnic Minoritised-led organisations to have greater and better access to finance, create more positive and sustainable social impact, and ultimately lead to equitable and inclusive economic growth in the UK.
Our Progress to date
At inception, the Pathway Fund secured £3.6 million in development funding from its founding funders: The National Lottery Community Fund (TNLCF), Access – The Foundation for Social Investment(Access), Esmee Fairbairn Foundation, Joseph Rowntree Foundation, City Bridge Foundation, Big Society Capital (BSC), Barrow Cadbury Trust, and Carnegie Trust UK. This collaboration of investors has seeded Pathway’s development and establishment as a Company Limited by Guarantee.
We are using these resources to deploy and test our offer via a £500k enterprise development program, a £300k Emerging Fund Managers program, and a £1.1m+ Cost of Living program. We are delivering research and system-wide outputs such as supply and demand side research, a racial equity scorecard, a knowledge hub, and more. The resource is also being harnessed to build a team, operational infrastructure, and a brand. We are confident we will secure a double-digit million-pound contribution from the UK Dormant Assets fund towards our work in 2024, and we are in advanced discussions with philanthropic and corporate foundations to contribute to our endowment in 2024 and 2025.
Who are we
To date, this work has been driven by our three core founders. Bonnie Chiu the founder of TSIC has driven our social investment work, Kunle Olulode MBE and Voice 4 Change have been our hosts, and are race equality experts, and Stephen Bediako OBE, founder of Black Global Trust has led influencing and stakeholder engagement. Our founders have a globally recognised track record in their field, and all played a role in founding the diversity forum in the UK, and currently work with leading foundations and stakeholders in social impact across the globe.
The Founders are joined by an incredible executive team which includes Dilys Winterkorn as the founding Director, Christine Chang as Chief Investment Officer, and James Endean as a fractional COO/CFO. Our Advisory Board is made up of 9 leaders, including BSC, Access, the media, Venture Capital, Legal experts, and policy experts. As we establish a new Board our Advisory Board will wind down.