‘Pay for success’ social-impact bonds help train ex-convicts
Tuesday, January 7, 2014
Merrill Lynch and US Trust reached out to some high-powered clients this quarter to invest in a social-impact bond whose proceeds finance a program to lower recidivism rates among ex-convicts in New York.
The project raised $13.5 million over 60 days from clients of the Bank of America Corp-owned brokerage and wealth management firms. Investors included former US Treasury Secretary Lawrence Sommers,Utah philanthropist James Sorenson, hedge fund founder Bill Ackman’s Pershing Square Foundation, and the Laura and John Arnold foundation.