US Domestic Small Cap Pay For Success (PFS) Fund
|Primary impact area||Impact area||Geographic location of impact||Investment commencement||SDG alignment|
|Social||Social Care & Provision of Community Services||North America||2017||
High-quality, effective social services are integral to creating sustainable, thriving communities. The Domestic Small Cap Pay For Success (PFS) Fund and its investors provide financing for the delivery of these important services to individuals and communities across the United States (US).
The US Domestic Small Cap PFS Fund was the first Social Impact Bond or PFS Fund in the US and is focused on supporting transactions that see services delivered in a range of areas, including but not limited to social services, health care, housing, and education across communities in the US.
The fund invests in projects in these and other community areas that seek to implement evidence-based interventions to improve social outcomes on behalf of government and its taxpayers and communities. The investors in PFS are repaid, and achieve a moderate return, when the programs achieve their social objectives.
Projects invested in by the fund include Project Welcome Home (PWH) – a project which will see up to 200 homeless people supported with clinical services and housing in Santa Clara County, and Project Ventura – a program in Ventura County which seeks to facilitate effective and productive re-entry of individuals into society after prison.
The projects are expected to deliver significant value to the communities they target, with social benefits that will be realised in the short and long term. These benefits include reduced costs as well as improved health, economic, safety and productivity outcomes – ultimately creating stronger, safer, healthier individuals and communities. For example, the Ventura County transaction is projected to create approximately USD 900,000 in net savings for the County based upon criminal justice system-wide savings.