Not a lot of specific SIB interest this am although we do have a couple of interesting stories about impact and social financial related activities contiguous to the Pay For Success topic…happy reading!
How do you give to a good cause and make money at the same time?
Bank of America Merrill Lynch and Social Finance Inc. say it is through “social impact partnerships.”
The new funding concept raises money for non-profits while investors have an opportunity to earn returns on their investments rather than make straight charitable donations. Social Finance is a nonprofit that arranges funding for social causes.
“Social impact partnerships can transform the way important social causes are funded,” says Liam O’Neil, head of markets group at Bank of America Merrill Lynch.
Merrill Lynch and Social Finance recently used the financing method to raise $13.5 million to fund a jobs program for recently released prison inmates in New York City and Rochester, N.Y. Money was raised from 40 individuals and foundations to pay for a work re-entry program. Investors had to meet the same qualifications as private equity investors, including having at least $10 million in investable assets.
The investments will pay for the Center for Employment Opportunities to fund a jobs program aimed at reducing inmate recidivism, which often reaches 75 percent.
The first round of ventures in MaRS Discovery District’s impact investing platform, SVX, have raised $650,000 in financing.
SVX issuers, including Investeco and Community Forward Fund (CFF), attracted $650,000 through investments and commitments since the launch of SVX (Social Venture Connexion) in September 2013. The announcement was made today at MaRS’ Impact Ontario conference.
SVX mobilizes private capital for public good by driving investment in companies and organizations that will better our world alongside generating profits. It is the first registered local impact investment platform of its kind in North America.