Macquarie 50th Anniversary Award
The Macquarie 50th Anniversary Award funding will support the development of 20-25 Pay for Success projects, which will reach an estimated 20,000-25,000 individuals over the life of the grant. The remaining funds will be used as seed capital for a $US50 million evergreen fund, which will sustainably recycle returns and unlock additional impact investment capital, ultimately benefitting hundreds of thousands of low-income Americans.
In capital to be unlocked
Pay for Success programs developed through the Award funding
Individuals assisted over the life of the funding
"We're dedicated to building new models to finance social change and to mobilise capital in a way that we’re measurably improving the lives of people in need."
Tracy Paladjian, Co-Founder and Chief Executive Officer of Social Finance
In this podcast, Shawn Lytle, Macquarie’s Head of Americas, speaks with Tracy Palandjian, Co-Founder and Chief Executive Officer of Social Finance about how the non-profit embraces innovative funding strategies to measurably improve the lives of those in need. Listen to the full podcast to discover the impact of Social Finance.
Recorded in 2020.
Social Finance aims to unlock $US1 billion in capital to address declining economic mobility in the United States.
Since its founding in 2011, Social Finance has pioneered the field of Pay for Success, through innovative financing strategies like the social impact bond and the career impact bond, to measurably improve the lives of those in need.
Their current social impact bonds address critical workforce issues, providing immigrants and refugees with vocational training and supporting Veterans to find and keep good jobs, as well as other social challenges.
Social Finance’s first career impact bond will enable 1,000 low-income students to access support services and valuable training in coding to achieve career success. Once participants gain employment above a certain income, they pay a fixed percentage of their salary over a number of years, up to a capped amount.
By deploying catalytic capital, Social Finance drives better employment outcomes and improves economic opportunity for the under-served.
In FY2021, Social Finance, working in national impact finance and advisory, launched three new Career Impact Bond projects in partnership with Acuitus, General Assembly and American Diesel Training Center.
In FY2022, working with the public, private and social sectors, Social Finance developed relationships with 65 new partners and mobilised $US65 million of capital for projects in its economic mobility portfolio. This portfolio has increased access to effective education and training programs for approximately 2,500 students, with the goal of preparing workers for jobs that lead to sustainable careers and a more equitable society.
Social Finance are driven by the belief that social and economic systems should enable all people to thrive, and the conviction that we can create the most meaningful and measurable change in our communities when governments and markets work together.
"Fifty years ago, 90 per cent of children in the US went on to earn more than their parents. Today it is just 50 per cent. Meanwhile, 40 percent of employers face labour shortages, resulting in over 7 million unfilled jobs nationwide. With the Macquarie Award, we will build a bold set of impact investments to address the dual challenges of declining economic mobility and a growing skills gap in our economy."
Tracy Palandjian, CEO, Social Finance