For the past five years, Kindred has shown what can happen when you invest in people, purpose and place – in the lived experience of people in their communities. This growing movement of socially-trading organisations (STOs) is helping build a fairer, more inclusive local economy, rooted in community, creativity and care.
Now, we’re building on that foundation. The next five years are about deepening Kindred’s role as a catalyst and connector across the Liverpool City Region – helping more people use social business as a force for good.
Since launching, Kindred has made 66 investments, totalling £3 million and creating over £35.9 million in social value. Over half of those investments have gone to women-led STOs, and nearly a third to Black-led organisations – a level of equality-led investment rarely seen in the UK.
Across our portfolio, turnover growth is 20% – and those who have had money the longest are achieving annual turnover growth of more than 50%. 20% is the OECD’s definition of ‘high growth’.
More than 1,500 people are now part of the Kindred community – a network of makers, founders and changemakers, building a different kind of economy.
“Kindred’s investment is about relationships, lived experience and partnership. We don’t just back ideas – we back people who understand their communities and what real change looks like,” says Jen Van der Merwe, Kindred’s director. “We’re also working closely now with our advocates across every sector to embed the social economy – and with STOs in every borough – to make that change last.”
A different kind of investment
Led by the experiences of 150 initial STOs who designed what they needed from money, Kindred’s approach has always been distinctive. The investment we make isn’t about chasing profit – it’s about patient, values-led money that helps STOs grow in a way that feels right for them and rewarding the impact they make through the inclusion of ‘social returns’, where a percentage of their loan is paid based on the impact they make.
Our commitment to diversity is also unmatched: 31% of STOs we’ve invested in are Black-led, with a ringfenced commitment to invest at least 25% of our money in this way. More than a number, it’s a promise to keep funding fairness into the system itself, investing in wealth creation not, drip feeding poverty. Average growth in the BlaST portfolio runs at 46% – more than double the ‘high growth’ definition, showing what happens when money goes into underinvested communities.
“Our portfolio is one of the most diverse in the UK, because we invest where traditional finance doesn’t. By listening to lived experience and backing Black-led and women-led organisations, we’re proving that inclusion isn’t just moral – it’s good business,” says BlaST director Joanne Anderson.
Pathfinder: a blueprint for the future
At the heart of the next five years is the Liverpool City Region Social Investment Pathfinder – the UK’s first place-based social investment fund.
Developed with eight trusted partners, including BlaST, Capacity Lab, Fusion 21, Kindred, Livv, Liverpool City Region Combined Authority, Power to Change and the city’s educational institutions, Pathfinder is Kindred’s way of scaling what works – bringing together local authorities, investors and communities to deliver the right funding, in the right way, where it’s most needed. Inspired by the Adebowale Commission, over seven years it will mobilise £50m, including:
- £10m early-stage blended finance
- £10m scale-up investment
- £30m land and property fund
“Pathfinder is a once-in-a-generation opportunity, supporting the creation of 4,500 accessible jobs, delivering 3,000 social innovations and generating £725m in social and community wealth,” says Kindred’s strategy director, Erika Rushton. “It can show the country what a devolved, truly social investment model looks like – one that puts action, trust and lived experience at the heart of how money flows.”
Kindred’s model is known for its basis in relationships – but also for its rigour. Every investment is grounded in evidence and accountability, from financial planning to impact measurement.
We believe that investing in lived experience is one of the most rigorous approaches there is. The people we back understand their communities better than anyone and their insight shapes projects that are sustainable, relevant and rooted in reality.
Looking ahead
By 2030, Kindred will:
- Invest £50 million into STOs in underinvested communities
- Support over 100 organisations to grow and lead local system change
- Unlock £100 million in community-owned assets
- Influence national policy on how social investment is designed and delivered
The vision is clear: a thriving, inclusive Liverpool City Region where trading for social benefit is the future of our economy.