oldman Sachs will invest almost $10 million in a city jail program that will produce profits for the investment firm if recidivism rates drop, marking the first U.S. effort of its kind to enlist private investors in financing public social programs, officials said Thursday.
Known as social impact bonds or pay-for-success contracts, such initiatives began in Britain and are in the works in some U.S. state governments. But New York City is the first in the nation to put one together, officials and experts said.
Inmates ages 16 to 18 will receive education, training and counseling intended to reduce the likelihood of them reoffending after their release.
“New York City is continually seeking innovative new ways to tackle the most entrenched problems, and helping young people who land in jail stay out of trouble when they return home is one of the most difficult — and important — challenges we face,” Mayor Michael Bloomberg said in a statement.