Impact Investing

Massachusetts Social Impact Bond

“We realized that an investment that provides financial returns while providing crucial social services was really a game changer.” - Andrea Phillips, Goldman Sachs, on Impact Investing

On January 29, 2014, Goldman Sachs announced our third social impact bond investment, in partnership with the Commonwealth of Massachusetts and other investors. A social impact bond is an innovative financial instrument that leverages private investment to support high-impact social programs. In this transaction, the Goldman Sachs Social Impact Fund made an investment of $9 million to expand services provided by Roca, a non-profit organization in Massachusetts that focuses on improving outcomes for high risk youth. Repayment of the loan will be directly tied to the achievement of future decreases in incarceration and increases in employment among young people participating in the Roca program.