“Pay for success has brought state and local governments into the impact-investing world. It brought in people who run homeless shelters and do job training: ‘If I’m good at what I do, I can access the capital markets.’”
Tracy Palandjian is chief executive of Social Finance Inc., a private nonprofit she co-founded seven years ago in Boston. Palandjian spoke recently about becoming an accidental entrepreneur, and why she leaves extreme sports to her husband and three teenage daughters.
The arrangement is the state’s third “pay-for-success” deal, and the first of Governor Charlie Baker’s administration. Pay-for-success financing is an innovative approach to paying for social-service projects that might otherwise languish amid tight state budgets.