Types of social impact investment

Types of social impact investment

Social impact investments come in different forms, including (but not limited to):

Social impact bond

A financial instrument that pays a return based on achieving agreed social outcomes.

Layered investment

Combines different types of capital in non-traditional ways.

Payment-by-results (PBR) contract

A service provider is paid on the results they achieve. A social benefit bond is a special type of PBR contract.

Outcomes-focused grant

Non-repayable grant funding provided on the basis of measuring outcomes. May also be used as a guarantee.