Newpin SBB
SIB Details
| Location | Australia, New South Wales |
| Commencement date | 1 July 2013 |
| Savings area | Out of Home Care |
| Bond Amount | $7m upfront |
| Bond terms (years) | 7.25 years |
Intervention Program
| Program description | Centre-based family therapy program (parenting modules, individual & group therapy, child development) |
| Treatment duration | Generally 18 months per family. Families continue on program for 6 months post restoration of child. |
| Target population | Cohort 1: Families with at least one child aged 5 or under who has been in OOHC for at least 3 months (50%) Cohort 2/3: Families with at least one child aged 5 or under who has been assessed as at risk of serious harm (25%) or who need support (25%) |
| Intervention cohort | Target Population members able to access centres that are referred by FACS (and NGOs). >700 families (~1,400 children) across all cohorts over 7 years (ramping up). |
Outcome Measurement
| Metric | The number of participating Cohort 1 children who are restored to the care of their family over a program year. For investors: the proportion of Cohort 1 children in a Mother’s Centre who are restored to the care of their family over a year. |
| Counterfactual | First 3 years: fixed estimate (based on analysis of historic data). Thereafter: administratively constructed control group (built up over first 3 years) – inclusion of families jointly approved to ensure reflective of Newpin participants. Investors: effectively fixed throughout. |
| Outcome Calculation and Target | Investor payments: Rate of restorations (RR) of Cohort 1 children in Mother’s Centres. Govt payments to UnitingCare Burnside: number of restorations relative to counterfactual. Target ~50% reduction in proportion of children remaining in OOHC. |
Contracting parties
| Government Agency | NSW Government – Family and Community Services |
| Service Provider | UnitingCare Burnside |
| Intermediary | Social Ventures Australia |
| Evaluator | Deloitte |
Investor details
| Investors | Wide range of investors (59 in total): HNW individuals, SMSFs, trusts and foundations, institutions. |
| Returns | Returns vary with RR: <35% – 45% principal lost (inc coupons) 50% – breakeven 55% – 3% IRR 60% – 7.5% IRR 65% – 12% IRR >70% – 15% IRR (max) |
| Capital protection | 50% principal protection;(75% during first 4 yrs) |
Case study
| Comments | Investors not exposed to counterfactual/control outcomes – fixed target. Government contracts directly with service provider rather than SPV. Component of payments not outcome linked. |
Download the Newpin Social Benefit Bond case study (PDF, 153KB)
