Up to 20 percent of US veterans who have returned from recent tours of duty
are diagnosed with post-traumatic stress disorder (PTSD). They face significant
obstacles as they adjust to life at home, with research showing how PTSD
interferes with a sufferer’s ability to thrive in the workforce, and can have a
negative impact on opportunities for sustained employment and income.
This
is where social finance comes in: impact investors have raised $5.1 million to
fund the Veterans Coordinated Approach to Recovery and Employment (Veterans
CARE) programme, a pioneering “Pay for Success” project that aims to improve
employment outcomes for veterans suffering from PTSD. Made possible by a
partnership between the US Department of Veterans Affairs (VA), a few states in
the northeastern United States and the non-profit organisation Social Finance,
the investment will provide project development and active performance
management.
The
project will serve 480 veterans over three years in New York City, Boston,
Brockton (MA) and central and western Massachusetts. It will measure four
outcomes for participating veterans: sustained competitive employment,
participant earnings, job satisfaction, and fidelity to the Individual
Placement and Support (IPS) model. Investors receive a return based on the
project’s success against these outcomes.
BNP Paribas has a proven track record of investing in Pay for Success projects to drive social change across the Americas.
Bob Hawley, CEO, BNP Paribas CIB Americas
This
investment underlines the continued growth of BNP Paribas’ social impact bond
transaction portfolio, with an expanding footprint in the US and France. It
also builds upon the bank’s credit facility for Connecticut’s first Pay for
Success project in 2016, launched by the Connecticut Department of Children and
Families.
“BNP
Paribas has a proven track record of investing in Pay for Success projects to
drive social change across the Americas,” explains Bob Hawley, CEO, BNP Paribas
CIB Americas. “Through the Veterans CARE project, we are determined to help
improve employment possibilities for US Veterans living with Post-Traumatic
Stress Disorder.”
The
Veterans CARE project is putting veterans with PTSD on the path to finding and
retaining successful job opportunities in the northeastern US – underlining how
the public, private and social sectors can come together to drive positive
investment.