Goldman, Pritzker & United Way Team up for Latest SIB Pilot

Goldman Sachs, J.B. Pritzker, and the United Way of Salt Lake announced the latest Social Impact Bond at the Clinton Global Initiative America on June 13, 2013. The total $7 million initial investment - with up to $4.6 million from Goldman and $2.4 million of subordinate debt from Prtizker - will go to the United Way of Salt Lake's Utah High Quality Preschool Program to fund the expansion of the Granite and Park City school districts program for at-risk children. This program, which is run by Utah Voices for Children, is set to expand the spots in the program for 600 more children, in the first year. The 5% top payout to investors will come from anticipated cost savings due to students not needing to avail the state-sponsored special education services. 

For more information, please see: 

  1. FACT SHEET: The Utah High Quality Preschool Program
  2. United Way Press Release
  3. Press Release from BusinessWire
  4. Overview and Video from Goldman Sachs
  5. New York Times Dealbook. "Goldman Sachs to Finance Early Education Project" (6/12/13)
  6. Wall Street Journal. "Novel Investment to Boost Preschools" (06/24/13)
  7. The Salt Lake Tribune. "Utah public preschool push gets $7 million from private investors" (06/14/13)
  8. The Huffington Post. "A New Way to Finance Early Childhood Education" (6/14/2013)

 

Update: On July 16, 2013, the Salt Lake County Council voted to approve participation in the SIB deal. It passed at the County level with unanimous approval for up to $350,000 to be used in the outcomes payments to investors. According to The Deseret News, the “United Way of Salt Lake and Salt Lake County will pay back investors, with interest, from anticipated savings in special education costs later” and the deal “is an opportunity to prove that results-based financial modeling works to the Utah Legislature.”

For more information:

 

Author(s)

Publication Date

07/16/2013

Publisher

Nonprofit Finance Fund

Resource Type

Article/Research

Audience

  • Nonprofits/Service Providers
  • US State/Local Government
  • Private/Corporate Investors
  • Intermediary
  • Foundation/Philanthropic Investor
  • Evaluators/Impact Measurement Specialists
  • Media/Journalists

Topics

  • Social Impact Investing
  • Legislative Issues
  • Measuring Impact/Performance
  • SIB Models and Structures
  • Potential Implementation Areas

Other Geographies

Keywords

Chicago, early childhood, education, Goldman, Pay for Success, preschool, Pritzker, Salt Lake, SIB, United Way, Utah