Catalytic Capital | June 5, 2017

$10 million fund aims to spur pay-for-success programs in the U.S.

The team at


The Reinvestment Fund is launching a $10 million fund to back pay-for-success programs in the U.S.

Twelve pay-for-success initiatives have successfully launched in the U.S. since the first, tackling juvenile recidivism on Riker’s Island in New York, launched (and then collapsed) in 2012. Often the programs, which involve complex financial terms and impact assessment, take one to two years to develop, while only small amounts of funding are available to help structure the deals.

“The PFS Fund offers an innovative organized capital source that will bring efficiency to these transactions by reducing costs and speeding deal execution,” says Reinvestment Fund CEO Don Hinkle-Brown.

QBE Insurance is committing $7 million and Living Cities is investing $2 million alongside a $1 million contribution from the Reinvestment Fund’s loan fund.The PFS fund will look for senior debt opportunities in the $2 million to $4 million range.

The Reinvestment Fund, a community development finance institution, is expanding its impact investing strategies. In May, it issued a $50 million impact investment bond offering to support small businesses and community services in low-income areas.