Social Finance drives Social Impact Bond Pay for Success project
Clients Social Finance, Inc.
Jones Day advised Social Finance, Inc. in its role as intermediary in the recently announced New York State pay-for-success program, also known as a Social Impact Bond. Only a few of these programs have been launched and this is the first such program that involved sales of investments to unaffiliated investors. This New York State project will be funded in part by a grant from the U.S. Department of Labor and by a grant from New York State.
Work on the project began in 2012 and involved crafting a contract between Social Finance and New York State that provided investor protections that are not customary in state contracts, creating an investment structure that met the needs of the many constituents and describing the program and investment in private placement offering documents. Merrill Lynch acted as placement agent for the investments, raising $13.5 million.
For more information, links to the Social Finance Web site announcement and the New York State press release are below.
Social Finance Web Announcement http://www.socialfinanceus.org/what-we-do/select-current-engagements/social-finance-drives-landmark-new-york-state-deal
New York State Release http://www.governor.ny.gov/press/12302013-pay-for-success-project