IAAM SIB
SIB Details
Location | United Kingdom |
Commencement date | October 2013 |
Savings area | Adoption of hard to place children |
Bond Amount | £2m |
Bond terms (years) | 10 years (no new children after 7.5 years) |
Intervention Program
Program description | Training in therapeutic parenting and 24 hour support to optimise the effectiveness of the parenting and reduce the risk of breakdown. |
Treatment duration | 2 years |
Target population | Difficult to place children who would otherwise not succeed in finding an adoptee family. |
Intervention cohort | Unknown |
Outcome Measurement
Metric | 1. 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 |
Counterfactual | Fixed – nil |
Outcome Calculation and Target | Target 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 Agency | UK-wide Local Authorities |
Service Provider | Range of voluntary adoption agencies |
Intermediary | Consortium of Voluntary Adoption Agencies (CVAA) |
Evaluator | Independent Assessment Officer |
Investor details
Investors | Unknown |
Returns | 4% yield to investors on the amount drawn down from them. Target 8-12% IRR. |
Capital protection | Investors 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
Comments | IAAM 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. |