Goldman Sachs is making its second foray into an experimental method of financing social services, lending up to $4.6 million for a childhood education program in
This “social impact bond,” in which Goldman stands to make money if the program is successful but will lose its investment if it fails, will support a preschool program intended to reduce the need for special education and remedial services. The upshot, in theory, is that taxpayers will not have to bear the upfront cost of the program.
Goldman is being joined in this effort by the
Chicago investor J.B.
Pritzker, who is providing a subordinate loan of up to $2.4 million, bringing
the total financing to $7 million. The loans were announced at an event in Chicago on Thursday….
Read all about it at http://dealbook.nytimes.com/2013/06/12/goldman-to-invest-in-utah-preschool-program/