Reference no: EM133282421

Question - The NU Endowment Community Blended Value Fund is evaluating an investment in a Boston non-profit community job training services organization that teaches medical diagnostic equipment operating and repair skills to 300 adult unemployed adult workers annually. The program manager believes its graduates have a reasonably good record of gaining employment in the private sector. The organization, paid by the State of MA on a five-year contract paying a flat $4,500 per student rate, is on the verge of reaching profitability with projections showing $100,000 annual net profit in five years, but it is currently losing $50,000 annually.  In order to achieve its five-year goal, the organization would like to attract 100 more qualified students, offer more classes, and therefore needs to hire 2 more part-time instructors at $10,000 each annually and purchase upgraded computers for its existing and new classrooms. The estimate for the computers would be $150,000.

How would you look to structure this funding? What step(s) is/are needed to proceed with your proposal?

How much money is needed to appropriately support the organization? Please state the quantitative and qualitative assumptions behind the calculation for your proposal.

Which specific form(s) of impact investing/funding would be the most appropriate and why? What could be the key specific economic and performance terms or milestones of the financing(s)?  Please consider eachof the following instruments and explain why you would or would notconsider it in a funding (Loan, Bond, Equity, Grant, Guarantee, Innovative Financing structure).

What specific data items would you track for the social impact of this investment? What recommendation would you propose for its program services and stakeholder reporting?

Please be creative but you must draw upon the class discussions and readings to support your analysis.