IAAM SIB

SIB Details

LocationUnited Kingdom
Commencement dateOctober 2013
Savings areaAdoption of hard to place children
Bond Amount£2m
Bond terms (years)10 years (no new children after 7.5 years)

Intervention Program

Program descriptionTraining in therapeutic parenting and 24 hour support to optimise the effectiveness of the parenting and reduce the risk of breakdown.
Treatment duration2 years
Target populationDifficult to place children who would otherwise not succeed in finding an adoptee family.
Intervention cohortUnknown

Outcome Measurement

Metric1. Agreement between local authority and adoption agency of plan for child
2. Placement of child in new family
3. 1 year in placement
4. 2 years in placement
CounterfactualFixed – nil
Outcome Calculation and TargetTarget 650 children placed over 10 years. Payments: £8,000 on registration; £23,000 on placement; £6,800 after 1 yr; £15,800 after 2 yrs.

Contracting parties

Government AgencyUK-wide Local Authorities
Service ProviderRange of voluntary adoption agencies
IntermediaryConsortium of Voluntary Adoption Agencies (CVAA)
EvaluatorIndependent Assessment Officer

Investor details

InvestorsUnknown
Returns4% yield to investors on the amount drawn down from them. Target 8-12% IRR.
Capital protectionInvestors take on a maximum breakdown risk of 10% of the cohort with any further increase being shouldered by the VAAs themselves, in proportion to their level of IAAM activity. Social Outcomes Fund provide additional capital protection.

Case study

CommentsIAAM creates its own endowment/funds itself in perpetuity – If placement breakdowns are lower than 10%, then the surplus provision for breakdowns is paid 50% to the investors and 50% to the VAAs for reinvestment and to incentivise them to deliver lower breakdowns. This creates a re-investment fund which allows the service to continue with funding in place after repaying its initial investors at the end of year ten.