Pathway Fund launches first phase of £12m dormant asset allocation to support diverse social entrepreneurs

Social investors can now apply for funding totalling an estimated £5.5m from Pathway Fund to invest in Black and ethnically minoritised-led social enterprises and charities across England.

Pathway Fund is a social investment wholesaler focused on Black and ethnically minoritised-led social enterprises. It provides grant capital for blended finance structures (where it can also be used as first-loss capital or guarantee) and programmes to support black and ethnically minoritised social entrepreneurs to access social investment. 

This is the first phase of Pathway Fund’s deployment of a £12m allocation from dormant assets. “Wave 1” will focus on four regions: London and the south east; the north west; the south west; and Yorkshire and the Humber. An average of £1m will be deployed for each region; meanwhile, £1.5m will be earmarked for national organisations and proposals elsewhere that have a strong place-based focus.

Asher Craig, CEO of Pathway Fund, said: “The organisations that we support are not just investment-ready; they are ready to lead. We built Pathway Fund to transform this market, and the launch of Wave One is the next important part of that process.”

She added: “This is not just a funding call. It’s a structural reset.”

Applications are open to Black and ethnically minoritised-led social investors, through Pathway Fund’s new Wave 1 Portal. Webinars will be held on 30 March and 16 April to support candidates through the portal. 

Craig added: “The opening of this portal will ensure that the communities that have not always been able to access mainstream social investment, now have a permanent home in this market – and can play a key role in driving forward the country’s impact economy, in turn.”

The organisations that we support are not just investment-ready; they are ready to lead

The UK government announced in June 2025 that £12m in dormant assets funding would be made available for Pathway Fund as part of a new £440m tranche of dormant assets funding, £87.5m of which were dedicated to social investment.

Pathway Fund is planning up to three phases to deploy the £12m dormant asset allocation. The second phase is estimated for 2027, but it will depend on the development of regional infrastructure and pipeline.

• Read more: £12m boost to diverse-led social enterprises in new UK dormant assets strategy

Mobilising co-investment

The number of social investors receiving funding in each region is not fixed, and the figures announced today are estimates, as the Pathway Fund will continuously review potential investments when deciding on how much to deploy, a Pathway Fund spokesperson told Pioneers Post.

The wholesaler aims to mobilise investments from co-investors to match the amount of funding it has provided from dormant assets. The spokesperson confirmed to Pioneers Post that co-investors may include any funders and investors that are aligned with Pathway Fund’s mission, for example foundations, combined authorities and other wholesalers like Better Society Capital. 

The wholesaler said it welcomed applications from early-stage social investors even if they did not have a detailed submission, as it was able to co-design a full proposal for shortlisted organisations. The wholesaler stated that while it was keen to work with organisations with an established track record, it was also happy to consider more innovative approaches.

Using dormant assets funding to support a social investor focused on Black-led social enterprises was central to the recommendations of the high-profile Adebowale Commission on Social Investment, published in 2022, which condemned the UK social investment sector for failing to reach the entrepreneurs that needed it most.

Top image: Freepik.