Social Finance operates as a vertically-integrated intermediary to develop, finance, launch, and manage high-quality Social Impact Bonds (SIBs). Until the market is more fully formed, Social Finance considers it essential to provide services along the entire SIB value chain in order to mitigate risk. Social Finance will:
ORIGINATE DEALS
We will source government champions and savings opportunities, vet models of intervention, conduct due diligence on nonprofits, and perform financial modeling.
SECURE GOVERNMENT CONTRACTS
We will promote the passage of legislation authorizing multi-year contracts, secure government contracts with appropriate metrics and payment terms, and negotiate and execute partnership agreements.
STRUCTURE THE INSTRUMENT
We will define metrics and comparison groups, articulate financial and social returns, hire a third-party evaluation firm to track performance over the life of the instrument, and engage an independent auditor to assess whether agreed outcomes are achieved.
RAISE THE CAPITAL
We will recruit investors, including foundations, high net-worth individuals, and institutional investors, to raise the investment capital.
MANAGE PROJECTS
We will provide active and ongoing project management, facilitate coordination among stakeholders, make course corrections as needed, ensure smooth execution of the evaluation and audit, and offer ongoing compliance and investor reporting.
In developing SIBs, we are committed to pursuing opportunities across a range of social issue areas in multiple geographies. We aim to develop high-quality partnerships with effective nonprofits, cultivate bipartisan community support, and engage the assistance of subject-matter expert advisors. Visit Partnership Development for more information.