Outcome Bonds: Designing, Financing, and Managing Impact-Driven Investments
Outcome Bonds (sometimes known as Social Impact Bonds, Development Impact Bonds, or other forms of Pay-for-Success financing). This course is designed to cater to finance professionals and business school students who want to develop a deep understanding of how outcome-based financing works, why it’s growing in popularity, and how to structure and manage these financial instruments in the real world.
- Course Title: Outcome Bonds: Designing, Financing, and Managing Impact-Driven Investments
- Level: Intermediate/Advanced (suitable for finance professionals and business school students)
- Duration: Approx. 8–10 weeks (flexible based on depth)
- Format: Lectures, readings, case studies, assignments, guest speakers (optional), and a final project
By completing this course, you will have:
- A solid grasp of Outcome Bonds’ theoretical foundations and practical applications.
- Hands-on experience structuring and evaluating a hypothetical OB through the final capstone project.
- Insight into the challenges and future opportunities of Pay-for-Success mechanisms, enabling you to innovate and contribute to the expanding field of impact finance.
Mode of Delivery: Online
Course Structure at a Glance
- Module 1 – Introduction to Outcome Bonds
- Module 2 – Key Stakeholders and Their Interests
- Module 3 – Financial and Legal Structuring of Outcome Bonds
- Module 4 – Impact Measurement and Evaluation
- Module 5 – Real-World Case Studies
- Module 6 – Challenges, Critiques, and the Future of Outcome Bonds
- Module 7 – Course Project Work & Workshops (Optional)
- Module 8 – Final Presentations & Wrap-Up
Assessment and Grading
- Online Class Participation (10–20%)
- Engagement in discussions, workshops, role-plays.
- Assignments/Problem Sets (30–40%)
- Reflection essays, stakeholder mapping, drafting a term sheet, impact measurement plan, etc.
- Midterm Exam/Quiz (20–30%)
- Tests understanding of key concepts (contract structuring, stakeholder roles, outcome metrics).
- Final Project/Capstone (30–40%)
- Quality of the final proposal, clarity of presentation, and demonstrated comprehension of all course components.
Recommended Readings
- Books & Reports
- Nicholls, A., & Emerson, J. (Social Entrepreneurship: New Models of Sustainable Social Change)
- Gustafsson-Wright, E., Gardiner, S., & Putcha, V. (Brookings Institution) – various impact bond reports
- OECD reports on Social Impact Investment and Pay-for-Success
- Academic Articles
- “Social Impact Bonds: A Conceptual Framework” (Public Administration Review)
- “The Emergence of Pay for Success” (Journal of Social Entrepreneurship)
- Online Resources
- Perfect Capita (for ongoing updates, case studies, webinars)
- Social Finance UK – pioneer of SIB structuring
- Global Impact Investing Network (GIIN) – broader resources on impact investing
- World Bank, IFC – knowledge portals on impact bonds and blended finance
- Case Study Libraries
- Harvard Kennedy School, Stanford Graduate School of Business, and INSEAD publications
