BNP Paribas, as administrative agent and lead bank, closed a credit facility for the State of Connecticut’s first Pay-for-Success Project launched by the Connecticut Department of Children and Families.

BNP Paribas is supporting this project in partnership with Social Finance, Family-Based Recovery at the Yale Child Study Center, University of Connecticut Health Center, the Harvard Kennedy School Government Performance Lab, White & Case, Jones Day and other participating lenders.

Pay-for-Success contracts, also known as “Social Impact Bonds,” are public-private partnerships that combine nonprofit expertise, private sector funding and independent evaluation to transform the way governments respond to chronic social problems. Through this model, private capital is raised to cover upfront costs for high impact programs while repayment to private investors only occurs if the program meets predetermined performance outcomes. Independent evaluators measure the effects of the program based on specific metrics that benefit both individuals and society.

The Connecticut Family Stability Pay for Success Project provides $11.2 million of private capital to support new intervention teams delivering family-based recovery treatment to families with children aged six years or younger. Each team will visit a client’s home several times per week to promote positive parent-child interactions, increase parental understanding of child development and assist parents on their path to substance use recovery. The project is designed to help ensure family stability and keep children with their parents.

Jean-Yves Fillion, CEO of BNP Paribas USA and Head of the Americas, Corporate & Institutional Banking said, “Our aim is to drive social change by creating well-structured and targeted investments as solutions to pressing social, economic and environmental issues. This innovative pay-for-success model demonstrates our ability to impact local communities and underscores our mission as a sustainable and responsible financial institution.”

In addition to BNP Paribas, participating lenders included QBE Insurance Group, The Reinvestment Fund, Doris Duke Charitable Foundation, Laura and John Arnold Foundation, Nonprofit Finance Fund and two anonymous family foundations.