2017 Symposium Industry Report: Pay for Success

• O rganizations that manage PFS projects including the collection and distribution of funds, certifying the program evaluation, etc.

Senior Investors Examples include individuals, community development financial institution (CDFI), trusts, foundations, commercial bank, or a public or nonprofit entity • I nvestors who provide the upfront capital to provide an intervention •  They are generally first to receive any profit and last to take a loss Subordinate Investors Examples could include any of the entities listed under Senior Investors • Investors who provide the upfront capital to provide an intervention • B ecause they have a lower ranking than senior investors, they generally receive profit after the senior investor(s) and are first to take any losses Grant Makers & Guarantors Examples could include any of the entities listed under Senior Investors • Investors who do not receive repayment regardless of outcomes •  They may also provide capital for project development, project evaluation, or other purposes Evaluators Examples include a university, government agency, or an evaluation firm • A ssist during program design with determining the project outcomes • E valuate PFS projects to determine the extent that the interven- tion met its intended outcomes • S ome projects have secondary evaluators, commonly called validators, that certify the primary evaluator’s results Technical Assistance Providers Examples include a university, or a for-profit or nonprofit organization • A ssist outcome funders and service providers with the design and implementation of a PFS project Stakeholder Motivations The Brookings Institution surveyed the stakeholders involved in a Pay for Success (PFS) project about their motivations for pursuing a project. Outcome funders have a balanced variety of motivations. Intermediaries strongly value testing

Pay for Success & Affordable Housing | Stefano Rumi 51

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