Commitment to Action

Launching Social Impact Bonds in the U.S.

Commitment by

Social Finance, Inc.

In 2011, Social Finance committed to launching Social Impact Bonds (SIBs) in the United States. Social Finance connects the social sector with capital markets. Its initial work is centered on the SIB, a public-private partnership organized to produce shared economic and social value. SIBs raise private capital to fund nonprofit programs that improve social outcomes and generate government savings, a portion of which is used to finance returns to investors. SIBs represent a new domestic impact investing opportunity, focusing explicitly on the base of the pyramid in the U.S. They also signify a new paradigm of public-private partnerships at the wake of the financial crisis, one that privatizes risk and socializes gains (as opposed to the reverse). Over the next two years, Social Finance commits to launch at least $100 million in SIBs to fund solutions at scale to address intractable and costly social challenges.

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Overview
Summary

Commitment

Launching Social Impact Bonds in the U.S.

Launched

2011

Est. Duration

6 years

Estimated Total Value

$135,000,000

Region

Northern America

Countries

United States

Commitment by

Social Finance, Inc.

Partner(s) of the Commitment Maker(s)

The Rockefeller Foundation, Omidyar Network, Sandra A. Urie, Social Finance Ltd., The Pershing Square Foundation, David Blood, The California Endowment, Sonal Shah, Michael E. Porter, Ronald M. Cohen, Bank of America Charitable Foundation, Luther M. Ragin, Alexander Friedman, Brace Young, Robin Hood Foundation, Center for Employment Opportunities