Breakdown of social impact bond investors in Australia

There are two social impact bonds in Australia that have raised investment and are delivering services. They have been called “Social Benefit Bonds (SBBs)” by the New South Wales Government, the state government that initiated them. They are the Newpin SBB and the Benevolent Society SBB and both of them work to strengthen families to ultimately reduce the need for children to be placed in care outside their homes. Investment for both deals was open to wholesale investors upon application. One parcel of investment in the Newpin SBB was transferred to a retail investor in August 2014, so is not shown on the chart. Also interesting to note is that the Benevolent Society, the charity delivering services for one SBB, has invested in the Newpin SBB, as well as in their own. A breakdown of investor types for each SBB is below.

Newpin investor breakdown(Source: Presentation by Ian Learmonth, 2013, p.14)

Bensoc investor breakdown(Source: KPMG Evaluation of the Joint Development Phase of the NSW Social Benefit Bonds Trial, 2014, p.30)

5 thoughts on “Breakdown of social impact bond investors in Australia

  1. Good morning Emma,

    I am sure it’s past morning over there.
    Saskatchewan is in the process of implementing the First SIB in Canada – a project to reduce out-of-home-care placement with the Ministry.
    I have been responsible for the SIB research and review of the process in the province.

    There is a need to develop a Framework for effective implementation of SIB, including identifying appropriate project fit for the purpose. My question is, can you suggest or provide me with source references as to what should go into the development of a SIB Framework. Basically, what specific pointers/consideration one needs to bring to bear when SIBs are being considered as the funding mechanism for a project.

    Thank you for your assistance.
    I was initially drawn into this, just because some Executive Directors and deputy Ministers decided that as a British Citizen, I must have knowledge of all this, despite the fact that I left the UK in 2009.

    Thank you for your time.
    Kind Regards
    Shlomo

  2. Hi Shlomo,

    Thanks for getting in touch and please email me on emma@emmatomkinson.com if there’s anything further I can do to help. I think most people working on SIBs in government came into the work fairly randomly, but most of us have enjoyed the challenging journey!

    My main pointers are (a) employ a measurement system that encourages the behaviour you want in your providers – seriously explore a few frequency measures (b) I believe the way Social Finance do performance management is one their greatest innovations – build this in (c) you have a SIB when everyone agrees, so you’ll have to develop something that appeals to the parties involved – there’s no foolproof roadmap, so arm yourself with research and analysis, but expect the bulk of the work to be in negotiation.

    A few of my favourite framework-style references below:

    All of the Social Finance resources are excellent, but the Technical Guide to Developing a SIB for Vulnerable Children and Young Peoplewill be the most relevant to your project.
    As a framework I like section 3 (page 72) of the Development Impact Bonds report they wrote with the Centre for Global Development – Figure 9 on page 92 sets a development process out very clearly.

    Another clear process is in the policy paper paper Social Finance wrote with the Bertha Centre and Genesis Analytics in South Africa. Appendix 5 (page 34) has a great process diagram, but the way the report guides you through their thinking might also be useful.

    The Social Impact Bond Knowledge Box from the UK Cabinet Office is a broader reference and has some good case studies.

    The Finance For Good SIB Feasibility Assessment has a feasibility assessment framework that might be useful.

    The Young Foundation’s Opportunity and Challenge of Social Impact Bonds has a seven test checklist on page 22 that might help identify suitable interventions.

    And finally, the MaRS Knowledge Hub has a great collection of SIB resources with a little description of each to help you navigate through.

    Emma

  3. thank you Emma, the information is very helpful and appreciate you taking the time to respond.
    Kind Regards
    Shlomo

  4. […] Social impact bonds are an area I’d like to see retail investment emerge. I’ve recently become a retail investor in the Australian social impact bond, the Newpin Social Benefit Bond. These investments were originally open to wholesale/sophisticated/accredited investors, so I had one of these transfer a parcel to me. Australian restrictions around advertising investment opportunities to the open market cease to apply to later private transfers. [For types of investors in social impact bonds see earlier posts Social Impact Bonds: Who are the investors? and Breakdown of Social Impact Bond investors in Australia.] […]

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