International financial services group BNP Paribas has announced an anchor investment in Veterans Coordinated Approach to Recovery and Employment (Veterans CARE), a $5.1 million pay-for-success project.
To that end, BNP Paribas will work with Social Finance, the U.S. Department of Veterans Affairs, the Commonwealth of Massachusetts, the City of Boston, the City of New York, and other lenders to improve employment outcomes for veterans with service-connected post-traumatic stress disorder. Managed by the Tuscaloosa VA Medical Center (TVAMC), the initiative will help four hundred and eighty veterans over three years in New York City, Boston and Brockton, and central and western Massachusetts, with local VA centers delivering individual placement and support (IPS) services to program participants.
Also known as social impact bonds, pay-for-success contracts leverage nonprofit expertise, private-sector funding, and independent evaluation to change the way governments respond to chronic social problems. In a pay-for-success project like Veterans CARE, participating governments repay investors only if the project achieves its pre-determined measures of success — in this case, participants' earnings level, ability to stay employed, job satisfaction, and the project's fidelity to the IPS model.
"BNP Paribas has a proven track record of investing in pay-for-success projects in order to drive social change across the Americas," said Bob Hawley, CEO of BNP Paribas CIB Americas and head of its Global Markets Americas division. "Through the Veterans CARE project, we are determined to help improve employment possibilities for U.S. veterans living with post-traumatic stress disorder."