|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|
|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).
|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.
|Government Agency||NSW Government – Family and Community Services|
|Service Provider||UnitingCare Burnside|
|Intermediary||Social Ventures Australia|
|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)|
|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)