I'm asking because of this news article in particular. To the best of my knowledge investing in high quality early education has one of the highest return of investment (ROI) ratios for governments, but now it seems that thanks to pay-for-success finacing models, also private corporations can have a way to capitalize on that. So, why are social impact bonds attractive to private investors, and how do they expect to to cash out?

  • It seems that this is thoroughly explained in the article. The state pays if a success threshold is met. Companies can sometimes find low cost ways to meet that threshold. Thereby they can turn a profit, and profit is attractive. Which part is troubling you? – denesp Feb 19 at 0:28

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