Service Lines

Impact Investment

The impact investment field is developing in Armenia, thanks to two major trends: the emergence of social enterprises; and, a drift from traditional philanthropic activities towards more sustainable and efficient solutions.

Impact Investment refers to investments made into companies, organizations, and funds, with the intention of generating a measurable social and environmental impact alongside a financial return.

Our Lab will be testing and prototyping impact investment financial mechanisms such as Social Impact Bonds (SIB) to evaluate their effectiveness in policymaking and reveal whether they can be used as alternative financing mechanisms in middle-income countries to overcome policy problems and address SDGs.

A Social Impact Bond (SIB), also known as Pay for Success financing, is a new vehicle that brings together private investors, the government, and nonprofits to take on social problems, such as public health, and education. With a SIB, private investors lend money to a social service provider, and the provider is expected to meet terms of success by a specific date. If these goals are met, then the government repays the private investors. If not, the government pays nothing. Because the investors expect a return, supporters believe that this funding model increases accountability for service providers, resulting in increased efficacy of SIB-funded programs.