Social Finance Inc

IMPACT INVESTMENTS Through its Impact Investing portfolio, SFI develops and manages impact-first investments and innovative financing solutions that generate positive outcomes for people and communities. In May 2023, SF Advisors, LLC, a wholly-owned subsidiary of SFI, became a registered investment adviser ("RIA") under As an RIA, SFI designs, launches, and manages impact-first investments, designed to generate positive outcomes for people and communities. SFI partners with individuals, family offices, and foundations to amplify their impact by directing more capital towards positive social and/or environmental outcomes. SFI offers asset management services, in which it manages impact-first private investment funds and Pay It Forward Funds. SFI also provides impact-investment advisory services to foundations, donor advised funds, and individuals on building impact investing portfolios. SFI also partners with federal, state, and local governments seeking to deploy public funds to address long-standing social issues, with a focus on outcomes and, in some cases, by leveraging private impact investment funds. SFI also analyses program data, often working with external evaluators with specific expertise. SFI's impact investments are structured either through equity or loan financing structures. It establishes separate affiliates or subsidiaries for each impact investment financing to hold the various contracts with its impact investors, governments (if applicable), the applicable service or training providers, as well as evaluators and loan or income share agreement originators and servicers. Five impact investment strategies employed to date include: . Career Impact Bonds ("CIBs"), a distinct contracting structure based on deferred tuition agreements like outcomes based loans ("OBLs") in which impact investors' funds cover upfront program costs and frequently wraparound support services for low income, under-skilled or under-employed students in order to advance their economic mobility. Unlike traditional student loans, agreements under the CIB programs link repayment to outcomes: students repay program costs once they gain meaningful employment after graduation and achieve the designated income threshold. Repayments are capped at a certain dollar amount and duration. SFI has funded CIBs through its UP Fund, and it has structured certain CIB projects as "pay it forward funds" where student repayments are recirculated to support future cohorts of students. . Career Certificate Fund Trust, a unique loan fund, was established to support economic mobility and prosperity by expanding the access of underserved, underemployed individuals to high-quality training programs designed for in-demand occupations using multiple Google Career Certificate programs. The Trust relies on the CIB financing structure to make interest free loans available to those seeking access to the Google Career Certificate programs. DREAMers Graduate Education loan fund, a unique impact fund which supports graduate educational loans for DREAMers (undocumented immigrant youth who came to this country at a young age and qualify for Deferred Action for Childhood Arrivals immigration status) to attend graduate school to achieve their professional goals. The fund provides graduate education funding at terms comparable to government student loan programs for DREAMers, who do not have access to these traditional educational loans. Social Finance Impact First Fund, an open-end fund of funds, was developed to address the barriers that donor-advised funds ( DAFs ), community and private foundations, PRI-makers, and other philanthropic capital investors face when pursuing innovative funds and investment strategies that support meaningful and measurable change for people and the planet. The Impact First Fund primarily invests in emerging, private market funds with the goal to catalyze positive, measurable environmental and social impact at scale as well as to make impact-first investing easier, more accessible, and more cost efficient. Social Impact Bonds (SIBs) which enable governments to achieve results for communities by partnering with investors, donors, and service providers to tackle particular social challenges. Governments only pay once a program achieves outcomes that benefit service recipients and generate public value. SIBs transfer the risk of non-performance from the public to the private sector and align project partners on the achievement of meaningful impact. Each impact investment team remains engaged in an impact investment project once it is launched through an ongoing project management and active performance management role to support achievement of the project's goals and outcomes.

IMPACT ADVISORY SERVICES-PUBLIC SECTOR PRACTICE - SFI PARTNERS WITH ELECTED OFFICIALS, POLICYMAKERS, CIVIC LEADERS, COMMUNITY MEMBERS, AND SERVICE PROVIDERS TO DEVELOP GOVERNMENT FUNDING TOOLS THAT LINK FUNDING TO OUTCOMES TO MAXIMIZE THE IMPACT OF TAXPAYER DOLLARS. SFI ANALYZES DATA TO SUPPORT BETTER DECISION MAKING AND HELPS ACTIVELY MANAGE PROGRAMS FOR OUTCOMES. WE ESTABLISH COLLABORATIVE GOVERNANCE STRATEGIES TO DRIVE IMPROVEMENT AND INNOVATION. SFI ALSO STRENGTHENS THE CAPACITY OF GOVERNMENT DEPARTMENTS TO ENABLE MORE EFFECTIVE AND EQUITABLE DELIVERY OF PUBLIC SERVICE, AND IT SUPPORTS PARTNERS IN DESIGNING AND EXECUTING INNOVATIVE PROGRAMS, PRACTICES, AND PARTNERSHIPS, GROUNDED IN PAY FOR SUCCESS PRINCIPLES.