Social Impact Bonds (SIBs) are an innovative approach to financing social service programs that combines outcome-based payments and market discipline.  They are designed to raise private capital for intensive support and preventative programs which address areas of pressing social need.

SVA was instrumental in developing and implementing the first SIB in Australia, the Newpin Social Benefit Bond and raised $9 million for a new SIB in South Australia, the Aspire SIB.

We continue to support the development of further opportunities in Australia and abroad. SVA has advised social service providers, Governments and the investor community on the opportunities, practical implications and processes that surround the development and implementation of SIBs and associated payment by outcome structures.

Our services include:

  • General education and capacity building
  • Advice on the feasibility of potential SIBs
  • Proposal development, including SIB modelling and outcome metric and payments design
  • Participation in SIB joint development phase alongside government and the service provider
  • Capital raising
  • Ongoing SIB management

Resolve SBB – closed to investment

The Resolve SBB raised $7m to fund the Resolve Program which aims to improve the lives of people suffering mental health issues in NSW.

Resolve SBB – closed to investment

The Resolve SBB will fund the Resolve Program which aims to improve the mental health and wellbeing of people living with a mental health issue in NSW. The $7 million in private capital raised will fund the Resolve Program – a recovery orientated, community support program which combines a residential service, outreach support into peoples homes and a warm line for after-hours support from peers.

The Resolve Program will be delivered by Flourish Australia, a highly experienced mental health service provider and a national leader in the employment and support of mental health peer workers.

The Resolve SBB is expected to improve the mental health and wellbeing of participants, while generating significant savings for the State. The outcomes of the program will be determined by comparing participants’ consumption of health services with that of a control group. Read more.

Done

Newpin Qld SBB – closed to investment

The Newpin Qld SBB raised $6m to fund the roll out of the Newpin Program in Queensland, with a particular focus on working with First Australian families.

Newpin Qld SBB – closed to investment

The $6 million in private capital raised for the Newpin Qld SBB will fund the Newpin Program in Queensland, and will place particular focus on working with First Australian families.

The Newpin Program will be delivered by UnitingCare Queensland, who will work intensively with families to safely restore children in out-of-home care with their families. The Newpin Program is an 18 month centre based program, based on the model that underpins the NSW Newpin SBB.

The Newpin Program is expected to generate positive outcomes for the children, their families and the community.  Payments to investors will be linked to payments made by the Queensland Government to UnitingCare Queensland, based on the incremental number of children successfully reunited with their families. Read more.

Done

Aspire SIB – closed to investment

The Aspire SIB is Australia’s first homelessness focused SIB. The bond raised $9 million of private capital to fund an innovative program for people experiencing homelessness in Adelaide.

Aspire SIB – closed to investment

SVA raised $9 million of private capital to fund Hutt St Centre, a homeless service specialist, for delivering the innovative Aspire Program which supports people experiencing homelessness in Adelaide.

The Aspire Program is a housing first intensive case management program that works with participants for three years. The program is designed to build the independence and resilience of vulnerable people experiencing homelessness by addressing the complex personal and structural causes of their homelessness.

The outcomes of the program will be determined by comparing the Aspire participants’ utilisation of health, justice and emergency accommodation services with a historical benchmark. The outcomes of the program determine investor returns.

The Aspire SIB has a 7.75 year term and is targeting an 8.5% return. Read more.

Done

Newpin Social Benefit Bond – closed to investment

Australia’s first SIB which raised $7m of private capital to fund the expansion of Uniting’s Newpin program, helping some of the most vulnerable families.

Newpin Social Benefit Bond – closed to investment

SVA raised $7 million of capital to fund Australia’s first SIB, the Newpin Social Benefit Bond (SBB), in NSW in 2013. The SBB funds the maintenance and expansion of Uniting’s Newpin Program.

The purpose of the Newpin program is to restore children in out-of-home care (OOHC) to the care of their families by creating and supporting safe family environments. It is an intensive 18 month centre based therapeutic course for families with young children aged five years or under.

Restoration of children from OOHC saves the NSW Government a significant amount and more importantly, evidence strongly suggests that being reunited with a safe family is in the long term interests of the child. The NSW Government makes outcome payments to Uniting based upon the success of the program, and Uniting in turn makes performance linked payments to the Newpin SBB investors based on restorations of children to their families. Read more.

Done

For more information about how SVA could support your organisation with the development and implementation of a Social Impact Bond or payment by results, please contact Casey Taylor on ctaylor@socialventures.com.au

To explore what SIBs exist globally, Social Finance UK have developed a useful database.

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