Journey to Social Inclusion: A Case Study on the J2SI Impact Investment Transaction

The J2SI social impact investment (SII) transaction (Transaction), developed by Sacred Heart Mission (SHM) and the Victorian Government in 2017/2018, is significant because it is the first transaction in Australia to include a guarantee in the delivery of a government pay-for-performance contract. It represents a potentially important innovation for how organisations seek to structure and finance SIIs in Australia and abroad. This report provides a case study of the Transaction and provides a significant learning opportunity about the use of a guarantee structure as part of a pay-for-performance contract, identifying the challenges that were faced, so that they can be addressed for future efforts.