ImpactAlpha, December 7 — The world’s largest healthcare company by revenue made a multi-million-dollar investment in Maycomb Capital’s Community Outcomes Fund to finance pre-K education in Memphis and surrounding Shelby County, Tenn.
Under the pay-for-success arrangement, Memphis and Shelby County will repay investors if milestones are met for attendance, pre-literacy skills and kindergarten readiness. The fund, in its second year, is financing 1,000 seats of high-quality preschool in the region, where only one out of three four-year-olds are enrolled in pre-K.
Prudential Financial and former Microsoft CEO Steve Ballmer and his wife Connie, committed $30 million to Maycomb’s fund in 2018. “Pay-for-success financing enables government to target resources to programs that work,” Ballmer said at the time. Kresge Foundation provided $10 million in credit protection (see, “Prudential, Kresge and Steve Ballmer back Maycomb Capital’s pay-for-success fund”).