It's one of the most complicated experiments in the nonprofit sector: Private investors pay for social services and are reimbursed — with a profit — if the social program meets its goals. Known as "pay for success," or "social impact bonds," it's meant to be a creative way to fund nonprofit programs and save the government money.
Boston is home to a pay-for-success pioneer: Social Finance, cofounded by Tracy Palandjian (right), a former consultant at Parthenon Group, Wellington Management Co., and McKinsey & Co. When the nonprofit organization was launched in 2011, Palandjian was its only employee — "it was lonely for quite a bit in the beginning!" she jokes — but it has now grown to about 30 people.
And Social Finance just hired two state government insiders: Navjeet Bal, former governor Deval Patrick's revenue commissioner, is now its vice president and general counsel, and Alex Zaroulis, Patrick's former communications director at the Executive Office for Administration and Finance, is director of communications.
"Adding more government capacity to our team has been a very intentional strategy," Palandjian said, "because our hope is that pay for success could become a mainstream tool in the larger public finance tool box for government folks."
There are three pay for success projects in Massachusetts. One, brokered by Third Sector Capital Partners, connects the Chelsea nonprofit Roca with Goldman Sachs to reduce recidivism among juvenile offenders. Another teams up the Massachusetts Housing Shelter Alliance and investors including Santander Bank to decrease chronic homelessness. The third, brokered by Social Finance, involves efforts by Jewish Vocational Services to improve adult basic education and vocational training.— SACHA PFEIFFER
Southie club gets a new name and a renovation
Alums of the South Boston Boys & Girls Club include a who's who of local pols. Among them: Congressman Stephen Lynch, state Representative Nick Collins, former state senator Jack Hart, former mayor Ray Flynn, Councilor Bill Linehan, and Police Commissioner William Evans.
"Josh will sometimes joke that in order to be a politician you had to go to the South Boston club," said spokeswoman Heather Robb, referring to Josh Kraft, chief executive of the Boys and Girls Clubs of Boston.
But if those "club kids," as they're known, were to visit today, they may not recognize their childhood haunt. This Saturday, the club, opened in 1940 at the corner of F and West 6th streets, will officially reopen after an $11.3 million renovation.
"If you took somebody who'd been in there 1,000 times, blindfolded them, put them in the middle of the new building, and took the blindfold off, they wouldn't know where they were," Kraft said. "It's that different inside."
It's also getting a new name: the Edgerley Family South Boston Club, to recognize Bain Capital managing partner Paul Edgerley and his wife, Sandy, a board member and former Bain & Co. consultant.
They gave $6 million to the organization's ongoing $125 million fund-raising campaign, its largest donation so far. — SACHA PFEIFFER
Big-name broker leaves Cushman & Wakefield
One of the biggest deal-makers in Boston real estate is switching teams.
Rob Griffin is leaving the brokerage firm Cushman & Wakefield, where he was head of the New England Capital Markets team and had a hand in many of the largest sales of office buildings in the region in recent years.
Griffin did not return messages seeking comment, and his destination was not immediately clear. One real estate publication, citing market sources, reported Griffin is headed to rival firm Newmark Grubb Knight Frank, along with much of his team from Cushman & Wakefield. A Newmark executive did not respond to messages Wednesday.
His departure comes after Cushman & Wakefield merged with another major commercial real estate brokerage, DTZ, earlier in September. DTZ was home to Joe Fallon, another of Boston's leading brokers and the firm's managing principal here. The merger prompted talk within local real estate circles about whether Griffin and Fallon would remain in the combined firm.
In a statement, Cushman & Wakefield confirmed Griffin's departure.
"We wish him the best of luck on this new chapter in his career," said Joseph Stettinius, the company's chief executive for the Americas. — TIM LOGAN
Liberal business group looks to expand its reach
If you're a business leader who wants to spend more on income taxes, Jesse Mermell might have a position for you.
As executive director for the left-leaning Alliance for Business Leadership, Mermell is helping the group recruit people to fill 15 new unpaid board seats. The alliance's board recently decided to expand from 25 directors to 40, Mermell says, as it seeks to diversify and expand its reach.
Among the group's big goals: getting more women on corporate boards and promoting the concept of charging individuals and companies for their carbon pollution. The alliance's board last week voted to endorse a potential 2018 ballot question that would create an additional income tax for people who earn more than $1 million a year.
Five new board members joined the group last week, to fill vacancies. They are:
Care.com vice president Donna Levin; Beth Monaghan, cofounder of the InkHouse PR firm; Colette Phillips, chief executive of the communications firm that bears her name; Alan Solomont, a dean at Tufts University and a former US ambassador to Spain; and C.A. Webb, cofounder of the new venture capital firm Assemble VC. — JON CHESTO
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