Public good, a pioneer initiative in Chile is joining private investment with the measurable social impact. The collaborative innovation platform founded in 2021 by 12 outstanding family and business foundations: Mustakis, San Carlos de Maipo, Colunga, Olivo, Larrainvial, Emprépolis, Footprint, Illumina, Luksic, Angelini, Reinaldo Solari and Hneeus.
A social impact contract model
The purpose of public good is to face great challenges of the country through social impact contracts (CIS). This model finances social programs that only receive resources when they meet their goals, guaranteeing efficiency and results.
First Fund Results
In its first fund, public good brought together 68 contributors and committed more than $ 1.2 billion in payments for results. The model achieved an annual return of 9.5% in pesos for investors.
One of the financed programs sought to improve literacy skills in 50 public schools. It benefited students of 1st and 2nd basic and reached 100% of their objectives, which activated the payment to investors and validated the model.
A second fund focused on public schools
“The first experience allowed us to show in practice that the impact profitability model is possible, and it prompted us to go for more. Today we are launching a second four -year fund, this time focused on schools administered by local public education services (SLEP), with an initial uprising of $ 500 million,” said Patricio Mayr, president of the Public Good and Director of Administration and Finance of Mustakis Foundation.
Innovation and public-private collaboration
The public good model articulates private investors, providers of social services, beneficiaries and public promoters. All this with external evaluation and step -by -step monitoring. Thus an efficient, transparent and scalable social investment is promoted.
“We want to demonstrate that complex social problems can be addressed with innovation, evidence and collaboration between the public and the private. Public good is a platform that is born to transform the way we finance the social impact in Chile,” Mayr added.
Leadership and projection
The Public Good Directory is made up of leaders of organizations committed to social innovation: Francisca Medeiros (Larrainvial Foundation), Martín del Río (Emprépolis), Francisca Reutter (Illuminina), Magdalena Palma (Angelini Foundation) and Patricio Mayr (Mustakis Foundation).
In the medium term, the organization reaffirms its commitment to promote social solutions with concrete results and promote a social investment ecosystem that directly benefits the most needy communities in the country.
