Subject: Social Impact Bonds . . . Friends of Island Academy
From: "Neil Callahan \(Rosemont Seneca\)" <[email-masked]>
To: <[email-masked]>, <[email-masked]>, "'Rob Walker'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'John DeLoche'" <[email-masked]>, "'Arlene Busch'" <[email-masked]>
Date: Thu, 20 Sep 2012 20:27:00 -0400

Hey guys,

Very interesting developments around how Goldman and Bloomberg are pushing
this concept.  Adds an entirely new dimension to Public Finance, currently
everything is asset backed (bridges, buildings, roads, rail)

But this concept ties investment performance to the bond holder based on
social outcomes.

Reminds me of John and my days at Chicago when our Econ professors were
talking about making markets to buy and sell pollution to drive change which
led to "cap and trade" 15 years later.

I am on the Board of charity which won the $10m in Goldman Bonds based on a
RFP process (they applied and won, crazy) - Friends of Island Academy  ,
which helps mitigate youth recidivism  http://www.friendsny.org/ .  

The money is over three years and started flowing this month.  Very cool
stuff.  Bloomberg stepped up with his family office to back stop 100% of
losses - if this goes sideways, he pays Goldman Sachs back.  So he will make
sure this works, no doubt.

And if this works, the Mayor will trumpet it big I would guess as a
post-Mayor private citizen looking to change government with good ideas from
finance and business . . .

I put it out there as something we could embrace in our story, our actions,
whatever.  But we can watch and align.  And it puts much needed cash into a
great organization doing good, which is the most important thing.

Let me know your thoughts.

Best,

Neil

 

Neil Callahan

Rosemont Seneca Partners

401 Greenwich Street, Suite 300

New York, New York 10013

917-945-9516 (m)

866-749-8879 (f)

 <http://www.rosemontsenecatech.com/> www.rosemontsenecatech.com

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