Social Finance US issued the following press release regarding the “first-ever SIB offering distributed via a leading wealth management platform – Bank of America Merrill Lynch – to qualified private and institutional investors.”
"We are privileged to have worked closely with the State of New York, The Center for Employment Opportunities (CEO), Bank of America/Merrill Lynch, The Robin Hood Foundation, The Rockefeller Foundation, and Chesapeake Research Associates over the past 16 months to form a groundbreaking partnership that expands comprehensive reentry employment services to 2,000 formerly incarcerated individuals in New York City and Rochester.
Specifically, we are proud of our success in raising $13.5 million to expand the work of CEO, a world-class provider backed by a rigorously tested, 35-year track record of success. CEO’s comprehensive program includes life skills, employment and retention support to recently released individuals. This SIB will be first to employ a Randomized Control Trial, considered the “gold standard” for evaluation, as the basis for determining outcome payments.
We would be remiss not to highlight the visionary leadership and participation of two key foundations. The Rockefeller Foundation, an early and tireless supporter of SIB market development, will provide a first-loss guarantee to protect approximately 10 percent of the total investment. The Robin Hood Foundation, NYC’s pioneering poverty fighting organization known for its rigorous evaluation, committed early to a $300,000 investment in the transaction. We’d also like to thank our legal counsel, Jones Day, for their invaluable assistance in bringing this transaction to fruition.
Under this pay-for-success partnership, the public, private and social sectors have come together to achieve a common goal – increasing employment and improving public safety in New York – via a structure and distribution model that we believe represent a significant step toward building a more robust, sustainable SIB marketplace.
2014 promises to be a pivotal year for the pay-for-success field. We are excited and encouraged by the pipeline of opportunities and look forward to leveraging the learnings from this transaction and working with our partners to continue to move the market forward.
Thank you for your ongoing support. We look forward to your feedback and shared learning.
CEO and Co-Founder
Social Finance US"
To read the official announcement from the office of New York Governor Andrew Cuomo click here to go to website.
To read the Bank of America Merrill Lynch press release click here to go to website.
To learn more about Social Finance US please click on the link below.