Pay for Success in Action: Massachusetts Pathways to Economic Advancement
The Massachusetts Pathways to Economic Advancement Project is a Pay for Success (PFS) initiative that is designed to increase employment opportunities for limited-English speakers by providing workforce development services. Developed by the Commonwealth of Massachusetts, Jewish Vocational Service (JVS Boston), and Social Finance, the project aims to deliver services to about 2,000 immigrants and refugees in Greater Boston over three years. Vocational English language classes, integrated with job search assistance and coaching, will help limited English speakers make successful transitions to employment, higher wage jobs, and higher education.
About the Investee
JVS is one of Greater Boston’s largest community-based workforce and adult education providers. Through the PFS investment, JVS will offer four programs – Rapid Employment, English for Advancement, Skills Training, and Bridges to College. The Commonwealth of Massachusetts will repay investors only if JVS successfully achieves positive outcomes defined at the outset of the project.
About the Impact Investors
The project’s 40 impact investors include several MIE members. Bank of America Merrill Lynch acted as the placement agent for certain qualified high net worth and institutional investors.
- Prudential Financial, Inc.
- Maycomb Capital, Community Outcomes Fund
- Combined Jewish Philanthropies’ Donor Advised Funds
- Barbara Bush Foundation for Family Literacy
- Blue Haven Initiative
- The Boston Foundation
- Boston Impact Initiative
- The Inherent Foundation
- The Kresge Foundation
- The Shapiro Foundation
- Sorenson Impact Foundation
Maycomb Capital's Community Outcomes Fund: The First PFS Investment Fund in the U.S.
The Kresge Foundation and Prudential Financial Inc. supported this PFS transaction via Maycomb Capital's Community Outcomes Fund, a new equity fund that will invest in outcomes-based financing transactions in the U.S.
Projects supported by the Community Outcomes Fund will help government scale social and health services that produce measurable outcomes in social and economic mobility. Through the Maycomb Fund, Prudential Financial, Inc. provided nearly 50% of total investment to the Massachusetts project. The Kresge Foundation provided a guarantee (in the form of a PRI) of up to $10 million to the Community Outcomes Fund, which offers limited credit protection to Limited Partners in the fund.