Newpin SBB

SIB Details

LocationAustralia, New South Wales
Commencement date1 July 2013
Savings areaOut of Home Care
Bond Amount$7m upfront
Bond terms (years)7.25 years

Intervention Program

Program descriptionCentre-based family therapy program (parenting modules, individual & group therapy, child development)
Treatment durationGenerally 18 months per family. Families continue on program for 6 months post restoration of child.
Target populationCohort 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 cohortTarget 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

MetricThe 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.
CounterfactualFirst 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 TargetInvestor 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 AgencyNSW Government – Family and Community Services
Service ProviderUnitingCare Burnside
IntermediarySocial Ventures Australia

Investor details

InvestorsWide range of investors (59 in total): HNW individuals, SMSFs, trusts and foundations, institutions.
ReturnsReturns 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 protection50% principal protection;(75% during first 4 yrs)

Case study

CommentsInvestors 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)