US experience - Social Impact Bonds

Research in the US and UK on pay-for-success (PFS) contracts (or social impact bonds), has shown that there are legitimate worries about how to maintain the positive dynamics of PFS as the market scales. In Funding Revolutions in Pay-for-Success, Boggild and Hlady are suggesting the possibility of experimenting with a PFS Revolving Fund, “a separate, publicly capitalized, and arms-length fund ............ (that)  would invest in PFS transactions and be replenished through outcomes payments if and when those projects succeed in producing agreed outcomes.”