Parthenon Group Wikipedia
|Leadership||Tracy Palandjian, Co-Founder and Chief Executive Officer
Lara Metcalf, Managing Director
Jeff Shumway, Vice President of Advisory Services
|Board of Directors||
Bracebridge H. Young, Jr., Chair
David Blood, Treasurer
Pamela Dippel Choney
Sir Ronald Cohen
Luther M. Ragin, Jr.
Sandra A. Urie
Social Finance, Inc. is a 501(c)(3) non-profit organization based in Boston, Massachusetts, USA, that provides advisory, transaction development and project management services to governments, service providers and impact investors engaging in Pay-for-Success (PFS) and Social Innovation Financing (SIF). Core to the firm’s work is the Social Impact Bond (SIB), a tool that draws upon private capital to fund evidence-based social interventions at scale.
The three organizations work closely together, but are independently funded and managed.
- Advisory Work: Feasibility studies, consulting assignments and development and implementation of proof-of-concept demonstration programs.
- Transaction Execution: Financial structuring, cost-benefit analysis, metrics and evaluation design, capital raising and contract development.
- Post-Transaction Support: Performance and fiscal management of projects, accounting and compliance and investor relations.
- Field Building: Market education, thought leadership and research.
Social Impact Bonds
In a SIB partnership:
- Private investors fund a social service program focused on prevention.
- Government repays investors based on the program's success in achieving pre-determined social outcomes.
- If outcomes are achieved, investors can recoup their principal plus a rate of return.
- If the program does not achieve those outcomes, then government is not obligated to repay investors.
Under a successfully deployed SIB:
- Government only pays for the results, as the SIB shifts performance risk from government to investors.
- Service providers receive upfront funding to serve larger populations.
- Communities and people in need receive quality services.
- Investors generate both a positive social impact and a potential return on their investment.
- Tracy Palandjian, CEO and co-founder: Before co-founding Social Finance, Palandjian was a managing director for 11 years at The Parthenon Group where she led the Nonprofit Practice. Her work experience also includes Wellington Management Company and McKinsey & Company.
- Jeff Shumway, vice president of advisory services: Shumway works to increase the firm's capacity to help service organizations pursue pay-for-success. Before joining Social Finance, Shumway spent nearly a decade with the Bridgespan Group. His professional experience also includes the Monitor Group and the Metropolitan Housing and Communities Policy Center at the Urban Institute.