New White Paper Reveals Gaps and Opportunities in Social Impact Investing

I am a board member of the Jessie Smith Noyes Foundation and we underwent a 7-month-long search to find a new investment advisor aligned with our social justice mission. We’ve just released our findings from that search. Read more in our white paper, "Building Power Across the Impact Investment Field" at noyesadvisorsearch.org.


New White Paper Reveals Gaps and Opportunities in Social Impact Investing

NEW YORK, NY – Jessie Smith Noyes Foundation, a leader in impact investing and social justice grantmaking, has released the findings from its seven-month-long search for an impact investment advisor, shedding new light on this ever-evolving field.

“While there is growing interest in and demand for social impact investing, there is very little documentation of how investment advisors operate, leaving social impact investors with few tools to navigate that space,” said Steven Godeke, Board Chair of the Jessie Smith Noyes Foundation. “Our white paper is an attempt to demystify the sector—and build greater accountability—by surfacing the themes that emerged from our open inquiry to the impact advisor community.”

The white paper, titled “Building Power Across the Impact Investment Field,” offers full transparency on the Jessie Smith Noyes Foundation’s overall search process, including the historical context behind the foundation’s impact investments, the questions that were posed to the investment advisor community (with a deliberate lens on gender, race, and inclusion), its evaluation criteria for selecting a firm, and recommendations for foundations interested in taking similar steps.

The paper synthesizes a number of findings gleaned from 34 responses to Noyes Foundation’s Open Call for Letters of Interest. "We were pleased to see so many thoughtful responses,” said Lenora Suki, Finance Committee Chair of the Jessie Smith Noyes Foundation. “Still, the industry's understanding of impact investing ranges widely. Investment products have grown but we need new products to fill gaps across asset classes."

Another significant finding is the apparent shortage of women- and minority-led firms, leading to a dearth of expertise on how to address gender and racial equality through investments. The report also points to some promising opportunities, including the accelerating pace of innovation in the field, and the important role that philanthropies can play in advancing the sector, through knowledge sharing, collaborative investments, and shareholder advocacy.

 “Our hope is that this paper will inspire anyone managing foundation endowments to explore opportunities for mission-aligned investing to generate long-term systemic change,” said Interim Executive Director Rini Banerjee. “We invite the sector to join us in this investment journey to regenerate our land, invest in people-powered solutions, and build stronger, more sustainable communities.”

“Building Power Across the Impact Investment Field” is available for download athttps://www.noyesadvisorsearch.org/.

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About Jessie Smith Noyes Foundation

The Jessie Smith Noyes Foundation was established in 1947 by Charles F. Noyes as a memorial to his wife, Jessie Smith Noyes. The Foundation's mission is to support grassroots organizations and movements in the United States working to change environmental, social, economic and political conditions to bring about a more just, equitable and sustainable world. Since 1990, the Foundation has worked to align its $55 million endowment with its mission through a deliberate focus on impact investing. www.noyes.org

2018 Shop Outlook: From Walden Pond to the Long Island Expressway

When I entered consulting in 2001, the intersection of investment and philanthropy was a quiet trail though the forest. Over the next few years, I met fellow pioneers and talked around the campfire about the blended value capital market, mission-related investing, and ultimately, impact investing. We aspired to a utopian capitalism in which markets drove prosperity and social and environmental goals were magically rolled into a double (or triple) bottom line. Impact investing seemed like the perfect way to break open the piñata of capitalism and shower the world with goodies. Our work bemused and irritated serious investors.

A Different World
Tackling the business versus society dichotomy has since become mandatory, and everyone seems to have gotten the memo. We have made much progress as more resources, talent and products pour into the field. Larry Fink of BlackRock was just in Davos calling for corporations to create social purpose.
 

Cause for celebration, but driving on the Long Island Expressway is different than hiking through the woods


Names Don’t Matter
We have spent too much time on nomenclature. We now need to deploy capital with clear intention and hold ourselves accountable through measurement.

In The Tent
We can't be part of the investment industry while trying to remain outsiders and changemakers. The desire of philanthropy and policy makers to “catalyze” impact and drive change in investment systems is not the right mental frame. We are swimming in the mainstream capital markets - not running a science experiment.

Proprietary No More
Impact investing is not about proprietary products; it's about implementation and process. The complexity of implementing an impact investing process can create an advantage for those who can cut through the thicket.

Data not Diatribes
We pioneers must not just proselytize but also commit resources and build teams that can execute. As data sets and data providers proliferate, new insights and results will emerge that may not be comfortable to us. We need to continue to look for quality impact and not settle for owning the usual suspects. Transparency and intentionality will be key.

Embarrassment of Riches
Asset owners who want to deploy their capital for impact are overwhelmed with the number of options. Asset owners face the daunting challenge that we all face in the world of online shopping: everything is available everywhere, but how do we find what we need and want? Trusted advisors and guides are clearly needed to objectively shift through the industry players and products.

Be Explicit or Be Complicit
Complicit was the Word of Year in 2017, and it applies to our investments as much as to our politics and culture. We are all complicit in climate change, we are all complicit when our portfolios create poison toxins or lead to more inequality. That is the profound change between 2018 and 2001.

There are no more places to hide, so we all must own what we own.
At Godeke Consulting, 2017 was a great opportunity to work with clients ranging from large foundations to amazing individuals – all trying to more efficiently and effectively drive positive change. We also continue to fine tune how we work and collaborate.

Extracurricular Activities
As Board Chair at the Jessie Smith Noyes Foundation, I have also been able to grapple with the challenge of moving Noyes forward while not losing our connection to the communities we are supposed to serve. Working with my fellow board members and staff to make hard decisions in a clear way has been a great learning experience for me. 

At NYU Stern, I continue to be amazed and energized by my students and colleagues as we work together to learn and think about impact investing. It was great to speak to the Stern undergrads in the Business and Its Publics course as well as continuing our Impact Investing in Family Offices seminar for a second year. In the summer, I was excited to participate in a meeting of business school faculty from around the world teaching impact investing.
 

The field keeps gets bigger and broader, and I am pleased to be part of it.


Finally, please take a look at our refreshed Godeke Consulting website with new case studies, videos and our toolkit of services for impact investors and let us know what you think.

I greatly appreciate the chance to work again with my 2017 project partners, Scott Budde, William Burckart, Gaspar Cello, Sarah Cleveland, Christopher Lopez, Gregory Pettit, and look forward to finding more opportunities for all of us to push more good ideas up the hill in 2018.

All the best,
Steve

Responsible Investing Americas December 2017

The Sustainable Development Goals (SDGs) and Measuring Impact of Your Portfolios Panel

I was fortunate to moderate a panel at RI Americas on the SDGs and Measuring Portfolio Impact with:

  • Aniket Shah, Sustainable Development Solutions Network

  • Emilie Beral, Research Director Vigeo Eiris 

  • Mikael Schvarzman, Market Development Manager Thomson Reuters 

With the UN SDGs' rapid growth as a tool for driving sustainable and responsible investing, our panel explored how the SDGs can be translated into a strategy to deploy capital on the ground. We began with how these high level development goals were created through a broad stakeholder engagement and then explored how ESG ratings and products are incorporating and addressing the SDGs. The audience raised issues about the challenges and gaps in taking policy objectives and then applying them to investment. These included incorporating the negative as well as the positive impacts of corporations and the geographic and sector concentration that the SDGs represent.  

 

Register Now: TIIP Event with Morningstar on February 8, 2018 in Chicago

On February 8, 2018, The Investment Integration Project (TIIP) and Morningstar will co-host an event that explores the ways in which investors can go beyond daily portfolio management activities like ESG integration and impact measurement and reporting and seek to influence the broader environmental, societal, and financial systems within which they operate.

The event will take place at Morningstar's headquarters at 22 W Washington St, Chicago, IL 60602, and will begin at 8:30am (registration opens at 8:00am) and will conclude by noon that day. The event will serve to launch their new joint report on the Roadmap to Measuring the Effectiveness of System-Level Investing Approaches, written by William Burckart, Steve Lydenberg, and Jessica Ziegler of TIIP.

In addition to remarks by Steve Godeke, Chair of the Jessie Smith Noyes Foundation and Founder of Godeke Consulting, confirmed speakers include Craig Pfeiffer, the President & CEO of Money Management Institute, Jon Hale, the Head of Sustainability Research at Morningstar and Anna Snider, the Head of Due Diligence, Global Wealth and Investment Management CIO Office at Bank of America, among others.

Register here.

Impact Investing Open Call for Family Offices & NYU Stern Partnership

Dear Impact Investing Colleagues:

As part of the NYU Stern Solutions experiential learning program, Professor Richard Levich and I will be leading our second Impact Investing in Family Offices seminar during the Spring 2018 semester.

During our inaugural seminar earlier this year, our MBA student teams worked with four partner firms to solve real time impact investing challenges. The engagements ranged from modeling solar energy projects and evaluating ESG rating systems to benchmarking legal and operating structures and landscaping community investment opportunities. We were very pleased with the results and would like to expand in 2018 to more students and partners.

If you are interested in being a partner or know of family offices that would be interested, there are more details below. This year, we have created a simple form for interested family offices to propose their consulting projects. Our goal is to select the participating family offices by November 15th and finalize the specific project scopes prior to the beginning of the seminar in January.

I appreciate your interest and look forward to hearing from you.

All the best,

Steve

 

 

Dear Colleagues,

With multi-generational investment horizons and the ability to flexibly deploy capital, family offices sit in a unique position to incorporate impact investing strategies into their operations. A range of impact investing initiatives for family offices has emerged. However, faced with the need to balance ongoing operations, family dynamics and investing, family offices may not have sufficient resources and staff to dedicate to this work even as its importance has increased with next generation family members.

Given this challenge and the strong interest among MBA students in impact investing, Stern is offering an impact investing seminar for our students with select New York area family offices. During our initial seminar in the Spring of 2017, our students worked with four partner organizations on projects ranging from modeling solar energy projects, to evaluating ESG rating systems, and landscaping community investment opportunities in a large U.S. city.

We encourage you to consider applying to be a partner family office for the Spring 2018 semester.

We have the following learning objectives for the students and outcomes for the family office participants:

Students:

  • Student teams of 3-4 MBAs undertake 12-week consulting engagements to complete an analysis of a “live” impact investing opportunity/challenge facing a family office. The final consulting deliverable is a presentation to the client and a written analysis.

  • The seminar combines in-class lectures, guest lectures and open clinic sessions. Students will receive credit for the seminar. Students are expected to work 5-10 hours per week on the consulting project in addition to the class. The opportunity to visit and meet with the family office team is a key part of the learning experience.

  • Students have the opportunity to develop client and consulting skills while sharpening quantitative and analytical skills on the creation of a clear work product. The experience of working face-to-face with a client on a real business issue is one of the most important course objectives. The teams operate independently and manage the scope and expectations of the client over the course of the engagement.

Family Offices:

  • The family office actively engages with the team and receives a customized work product addressing a clear business need. Project engagements can be tailored for family offices that are just exploring impact investing and also for others who have already made direct or fund investments and would like to evaluate their holdings or complete due diligence.

  • Family office members should expect to host the student teams at least three or four times throughout the semester in their offices to provide project check-ins and feedback. Should the students be working with confidential information, the appropriate safeguards are put in place. Each office designates an internal contact to serve as the point of contact. NYU faculty members work closely with each student team and the family office at every phase of the project to assure the relevance, quality and ultimate output of these efforts.

At the end of the semester, the students present their projects to their clients as well as the other family offices.  In the inaugural spring 2017 class, our family office participants considered this one of the most valuable parts of their experience.

We will be offering the seminar during Spring 2018 semester. Our goal is to select the participating family offices by November 15th and finalize the specific project scopes prior to the beginning of the seminar in January.

In order to most easily connect family offices with the students, this year we have created a simple form for interested family offices to propose their consulting projects. We are, of course, happy to talk with you directly about possible projects and offer suggestions.

We look forward to hearing from you.

Sincerely,
Steven Godeke
Adjunct Professor of Finance
NYU Stern School of Business

Richard M. Levich
Professor of Finance and International Business
Deputy Chair, Finance
NYU Stern School of Business

Godeke Consulting 2016 Shop Report

Here in my shop, 2016 was a year of learning, speaking and partnering thanks to friends & colleagues like you.

Teaching the Next Generation
Nothing keeps you on your toes like a room of MBA millennials. My course, Investing for Environmental and Social Impact, is now in its 6th run at NYU Stern and continues to be a huge source of inspiration for my practice. This year’s student projects spanned women’s health, fossil fuel divestment for university endowments, creating a market for runoff water credits, economic development programs for new immigrants and just transition energy projects in coal country. Best of luck to these students and their promising futures.

My other academic work included 1-day seminars at the NYU Center for Global Affairs and philanthropy training for private bankers visiting from China. In November, Jackie VanderBrug, dropped by to share her new book, Gender Lens Investing. This spring, Professor Richard Levich and I will be launching a new experiential learning seminar at Stern where students will work with family offices and investment firms to take on impact investing challenges.

Social Justice Investing at Jessie Smith Noyes
Outside of the classroom, I continued my deep involvement with the Jessie Smith Noyes Foundation as the Finance Committee Chair. In October, we issued an open call for letters of interest to work with Noyes as an investment advisor while also seeking to use crowd-research to better understand the intersection of impact investing and social justice. We received 35 responses reflecting a great amount of thought and energy on equality, diversity and inclusion, equal access, health, human rights and education as well as innovative community ownership structures. Stay tuned for our research report on Social Justice Investing later this year.

Back at my desk, I stayed busy leading conversations in a variety of forums, including a webinar with Confluence Philanthropy to share best practices when searching for impact investment advisors. These discussions continue to shape and sharpen my own work helping asset owners to find the best partners. I also had the opportunity to speak about diversity within impact investing at High Water Women's Investing for Impact Symposium, Diversity and Impact InvestingThe Aspirational Gap, and at Bloomberg's 2016 Power of Difference Summit. These important topics are certainly touching more of our collective work, and I'm excited to be a part of the conversations.

ESG and Impact Investing Border Crossings
As ESG investors from the public markets increasingly mix and mingle with the private markets impact investing crowd, I see a growing interest in building and measuring social and environmental impact across asset classes and strategies. In December, I visited with Global X’s NYC team and did a radio interview webinar to share my view of the field and suggest some tools for financial advisors. In a related op-ed, William Burckart and I wrote about the growth of the ESG Impact sector as mom-and-pop ESG shops are facing consolidation. Staying current on the latest industry dynamics continues to inform my customized research projects and impact fund advisory practice.

Closing out the year, it was great fun to take the podium in The Great Debate: ESG Ratings & Rankings for Funds and Managers at Responsible Investing Americas Conference.


"Growth and Comfort Do Not Co-Exist"
In 2017, let’s dig deeper into how capital can drive positive change. I hope to stay edgy without getting cranky, inspired instead of complacent and reflective while moving forward. I greatly appreciate the opportunity to work with my 2016 project partners, Scott Budde, William Burckart, Sarah Cleveland, Stephanie Gripne, Christopher Lopez, Michelle Mengel, Gregory Pettit and Melinda Tuan, and look forward to finding more opportunities for all of us to push good ideas forward together in 2017.

All the best,
Steve

Show Me the Money: The State of the ESG Sector

It was a pleasure to be invited to Global X’s NYC Headquarters to be a guest expert for their ongoing radio interview series. In this webinar, I discuss the ESG and impact investing landscape and the tools advisors can use to leverage this rapidly growing investment strategy. A huge thanks to the entire Global X team for including me in their work!

https://www.globalxfunds.com/webinar-replay-integrating-esg-into-your-practice/

In a related op-ed, William Burckart and I shared our views on the growth of the ESG Impact sector as Mom and Pop ESG shops are facing consolidation.

Noyes Announces Call for Investment Advisors to Lead Evolution of Social Justice Investing

The Jessie Smith Noyes Foundation has announced an open call for letters of interest (LOI) from investment advisors to advance its mission-aligned investing strategy. A press release and the LOI are attached. 
If you would like to share this exciting development in social justice investing strategies with your networks, you can use the following messages for social media: 
To Email, or post the LOI on LinkedIn or Facebook:
Jessie Smith Noyes Foundation (Noyes), a pioneer in the field of sustainable, responsible and impact investing for social justice, has announced an open call for letters of interest from investment advisors to advance its mission-aligned investing strategy. As innovation and growth accelerates across the impact investing industry, Noyes wants to surface expertise and new approaches from the investment field. Click http://www.noyes.org/impact-investing/ for more information.
Twitter:
Call for #InvestmentAdvisors to Lead Next Evolution of #SocialJustice #Investing #IMPINV #NoyesImpact @forbes @Bloomberg http://bit.ly/2dL4ueh

For Immediate Release
October 5, 2016 
Press contact: Karlos Gauna Schmieder, consultkarlos@mediajustice.org
Jessie Smith Noyes Announces Open Call for Investment Advisors to Lead Next Evolution of Social Justice Investing.  Click for the Press Release and Letter of Interest.
New York, NY – Jessie Smith Noyes Foundation (Noyes), a pioneer in the field of sustainable, responsible and impact investing for social justice today announced an open call for letters of interest (LOI) from investment advisors to advance its mission-aligned investing strategy.
“Noyes is soliciting information and ideas from the investment field during a sea change in the the pace of innovation and growth in sustainable, responsible and impact investing,” said Steven Godeke, Noyes Board Member. “We want to push our potential advisors to think broadly about social impacts like equality, diversity, health and human rights as part of our social justice movement building strategy.”
LOIs are due by November 1st. Noyes will review the LOI and then select up to five firms to receive a more detailed request for proposal, and publish a broad analysis and share learnings with philanthropic and investment institutions. 
Noyes’ commitment to aligning its mission and investments was triggered in the late 1990s by a board discussion about Intel and the environmental impact the company was having on the Albuquerque, New Mexico water supply and environment. The concern over the negative impact Intel’s plant would have on the water supply and environment of New Mexico was compounded when a board member pointed out that the foundation owned stock in Intel and had approved those investments earlier in the day. It was an eye-opening moment for Noyes, and one that cemented its socially responsible and mission-related investing policies and led to its decision to sell investments that did not align with the Foundation's mission.
Twenty years later, 100% of Noyes’ assets align with its mission, which is dedicated to building a socially and environmentally just society.
“It makes no sense to use five percent of your assets to try to promote something, while the other 95 percent might be doing something totally contrary,” says Wendy Holding, Noyes Board Chair. “We try to use 100 percent of our assets to promote our values.”
Along the way, Noyes has supported the work of its grantees through shareholder engagement, and worked to build the industry through collaborations such as Confluence Philanthropy and the Divest/Invest campaign.  
“As the impact investment field accelerates, Noyes is committed to deepening the impact of its investments to further its social justice movement building,” says Genaro Lopez Rendon, a Chicano community organizer from Texas recently hired as the Foundation’s president. “By looking at themes that have not traditionally viewed as ‘investable,’ we hope to spur much needed funding for themes such as equality, diversity, health and human rights.” 
To drive this exploration, the foundation is using the selection of an investment advisor as a means to surface expertise and increase awareness. 
“We are making ourselves a test case and want to continue to share our learnings in a transparent manner with the field,” says Lopez Rendon.
LOI Continues Below.
 Investment Advisor
Open Call for Letters of Interest
October 5, 2016
The Jessie Smith Noyes Foundation (“Noyes”) will be engaging an investment advisor to partner with our finance committee and board of trustees to advise on the management of the Foundation’s financial assets. Noyes is a private family foundation founded in 1947 and located in New York City with an endowment of approximately $50 million and an annual grantmaking and operating budget of $3 million. Noyes currently supports work in the following focus areas: environmental justice, reproductive rights, sustainable agriculture and food systems, sustainable New York City, and building power across movements. 
Our Vision
Noyes envisions a socially just and environmentally sustainable society in which all people are able to gain the knowledge and build the power they need to exercise their rights and participate fully in the economic, social and political decisions that affect their lives and communities.
Our Values
Noyes is a diverse and inclusive organization working towards a more equitable society. We consistently challenge structural racism, gender inequality, and discrimination based on ethnicity, race, religion, age, sexual orientation, economic status, physical ability, gender and immigration status, and seek to open channels of opportunities for these communities. We believe that people, not corporations, have inalienable rights. The foundation builds the power of people — those most impacted and those who have been marginalized — to be actively involved in advancing solutions to the problems they face. We believe in an environmentally just earth in which all species have the right to co-exist.
Our Theory of Change
We understand that social change occurs over a period of time through a combination of strategies, forces and events both small and large, planned and unplanned. We recognize the special role of diverse, inclusive and democratically controlled grassroots movements—particularly when such movements are driven by the very people impacted by inequity. They are the best advocates to build public support and community understanding as well as drive lasting change. We believe that grassroots movements composed in such a way are among the strongest forces in our society for holding public policy makers and private corporations accountable.
Noyes’ vision, values and theory of change drive both our programmatic and investment strategies. Noyes has been a pioneer in the sustainable, responsible and impact investing field for over 30 years. We have practiced shareholder activism to assist our grantees, supported the development of the field through investor collaborations and seeded innovative environmental and social investment funds. The Foundation has new leadership and is focused on remaining close to our mission of grassroots movement building, and Noyes’ investment resources are a critical part of this heritage. 
Our full investment guidelines are available at:
The Investment Advisor Selection Process
In order to gather information about the broadening universe of investment advisors active in the sustainable, responsible and impact investing field, we are holding an open call to the investment community to provide letters of interest as the first stage of our advisor search. Given the accelerating pace of innovation and growth in sustainable, responsible and impact investing, we are soliciting information and ideas from the field to better inform our process, and would welcome your participation. 
Please include the following elements in your letter of interest:
Organizational Capacity (2-3 Pages):
·       Summary of your organization's capabilities and alignment with Noyes’ values and goals as a social justice investor and grant maker.
·       Team members with experience and commitment to sustainable, responsible and impact investing.
·       Examples of products that peer clients have invested in across asset classes (equities, fixed income, private equity, real assets, alternatives) and approaches (values/norms-based, best practices, thematic/sustainability solutions, impact).
·       Brief description of your due diligence of managers for alignment with Noyes' values and investment objectives.
·       Analytical capabilities with respect to integrating Noyes' values and investment objectives into strategic and tactical asset allocation. 
In addition, we would like to have your thoughts on the following questions for the field (2-3 pages) 
·       What does “social justice investing” look like now and in the future?
·       Given our resources, how can we more tightly translate our mission (social justice movement building, environmental justice, reproductive health and rights, food equity and sustainable agriculture) into investable opportunities?
·       What are the most effective tools (impact investing, ESG stock selection, shareholder engagement and activism, community investing, impact investing, program-related investments) that we might deploy?
·       What does corporate accountability mean in this era of globalization of capital and supply chains? How does this translate into portfolio selection?
·       How can our mission aligned investment portfolio drive the creation of systemic impact in the areas of social justice, equality, human rights, health and diversity? Are there external initiatives or targets—such as the United Nations Sustainable Development Goals—that might influence our portfolio? 
·       How can the practices and culture of our investment advisors and fund managers embody our values and mission of social justice and equality?
·       What investment resources do the grassroots social justice organizations we support need in order to develop sustainable and viable operations?      
Please be aware that we will be sharing the results of the broader field questions with philanthropic and investment institutions. Our goal is to describe the current state of the investment advisor community’s ability to integrate social impact into the investment process. We will not share details about the organizational capacity of specific firms. 
Following a review of the LOIs, Noyes will select up to five firms that will receive a more detailed RFP and meet with the Finance Committee later this year. 
We ask you to please email your LOI no later than COB Tuesday November 1st to finance@noyes.org. In the interim, please contact us at finance@noyes.org with any questions. 
We greatly appreciate your interest in working with us and your willingness to share your thoughts and ideas. We look forward to reviewing your letter of interest and continuing this conversation.
Sincerely yours,
Genaro Lopez Rendon, President
Jessie Smith Noyes Foundation
Steven Godeke, Finance Committee Chair
Jessie Smith Noyes Foundation 

Cutting off Capital to Mountain Top Removal

Long recognized as bad for the environment and bad for communities, mountain top removal coal mining is now being challenged by investors who are telling the banks that finance the activity to stop.  This engagement tactic has also been used with banks on other project finance activities through the Equator Principles.  

The big question is does cutting off the bank lines stop the activity?  

http://nyti.ms/1Ac6hrP

Where's the Impact Investing Beef?

The NYT's Wealth Matters column touched on impact investing recently to describe how the asset class is expanding.  It was great to hear more about Paul Herman's HIP Investor rating system, but I am a bit tired of the large financial institutions getting quoted on the bright future of impact investing even though they do not have lots of options for their clients today.

http://nyti.ms/1lFwvkU

Is the Peterborough SIB a Success or a Failure or Too Early to Tell?

While the initial results of the Peterborough SIB did not trigger payments to the investors, the many factors driving this first SIB's success or failure are still up in the air.  This report from NPQ outlines the various positions and opinions.  Perhaps most telling is that the UK government has decided not to continue the program as a SIB but rather to revert to a more standard pay for performance contract without outside investors.

I think the role/need for investors in SIB structures remains unclear.

First Social Impact Bond Fails to Meet Halfway Mark Performance Target - NPQ - Nonprofit Quarterly