Even when doing God’s work, Goldman Sachs just cannot help itself. And as usual, Goldman Sachs is allegedly playing by its own rules.
It was supposed to be a win-win deal. Goldman Sachs had put together a “social impact bond” that paid for preschool for underprivileged children in Utah but would also make money for the investors
Goldman announced with great hoopla a few weeks ago that its investment in a Utah preschool program had helped 109 “at-risk” kindergartners stay out of expensive and stigmatizing special education programs. Moreover, the bond investment also led to a $260,000 payout for the Wall Street firm, the first of many payments Goldman anticipates receiving from the bond deal.
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Education experts consulting with the New York Times, however, strongly dispute the legitimacy of the success metrics Goldman was claiming for the Utah school program.
The problem with Goldman Sachs Success metrics
The nine well-known early-education experts who reviewed the Utah program funded by Goldman Sachs identified a number of irregularities the program’s success metrics, which means that Goldman and Utah are far overstating the impact that the investment achieved in helping younger kids stay out of special education programs.