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NY State Social Impact Partnership: Transaction Flow

Investors contribute $13.5mm in capital. Center for Employment Opportunities provides services to 2,000 recently released NYS prisoners. Social Finance provides on-going project and performance management. NY State Social Impact Partnership: Transaction Flow.

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NY State Social Impact Partnership: Transaction Flow

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  1. Investors contribute $13.5mm in capital Center for Employment Opportunities provides services to 2,000 recently released NYS prisoners. Social Finance provides on-going project and performance management. NY State Social Impact Partnership: Transaction Flow Outcomes measured by New York State and validated by Chesapeake Associates 12/2013 Next 4 years At 3 year and 5 year At 4 years and 5.5 years Outcomes met: New York State makespayments to investorsbased on programperformance. Outcomes not met: Investors receive no payments except forRockefeller first loss guarantee (10%)

  2. NY State Social Impact Partnership: Multi-dimensional Benefits Illustrative Public Benefits and Payments at Various Levels of Performance • Social and Economic Impact: Improving public safety and employment and thereby saving taxpayer dollars. • Efficient Use of Taxpayer Dollars: Transferring performance risk to private investors and protecting public budgets from paying for ineffective services. • Flexible Funding: Providing social service providers with access to flexible, multi-year funding necessary to build capacity and scale evidence-based interventions. • Accelerated Learning:Advancing knowledge about “what works” in tackling endemic social problems.

  3. NY State Social Impact Partnership: Key Differentiators First Syndicated Offering • Over 40 investors participated to meet goal of a broadly distributed social impact offering Rigorous Design • Significant rigor around the project design ensures that the results will be meaningful Modest Philanthropic Subsidy • A more modest philanthropic subsidy than previous transactions maybe a more scalable model Top Tier Partners

  4. 40+ Investors NY State Social Impact Partnership: Mechanics Rockefeller First Loss Guarantee Facility • Social Finance NYS Workforce Re-entry 2013 LLC Outcome Payer State of New York / USDOL Intermediary Social Finance Inc. Service Provider Center for Employment Opportunities Rockefeller provides 10% first loss protection* 1 7 Investors invest $13.5mm Receive performance-based payment Pay if – and only to the extent that – outcomes are achieved Target Population 2,000 High-Risk Formerly Incarcerated Individuals 6 Evaluator /Validator DOCCS Research / Chesapeake Research Associates 2 Fund operations Social Finance structures, coordinates, and manages the project Measure and validate outcomes Deliver employment services 5 3 4 Achieve outcomes (recidivism, transitional jobs, and employment) *The first loss protection is only availableto the Class A-1 investors

  5. * Anticipated role; Specific terms TBD

  6. Massachusetts Juvenile Justice PFS Initiative Deal Structure Source: Goldman Sachs Urban Investment Group

  7. MA Key Participants: Roles and Impacts

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