Pritzker, Goldman Sachs Announce $20 Million First Phase of Early Childhood Innovation Accelerator Initiative

  Pritzker, Goldman Sachs Announce $20 Million First Phase of Early Childhood
  Innovation Accelerator Initiative

Novel Social Impact Investments to Debut at CGI America Conference in Chicago

Business Wire

CHICAGO -- June 13, 2013

At President Clinton's CGI America Conference in Chicago today, investor J.B.
Pritzker announced commitments for $20 million as the first phase of an Early
Childhood Innovation Accelerator (the “Accelerator”) to increase the
availability and quality of early childhood education programs for
disadvantaged children.

Pritzker also announced the Accelerator's first three investments. The first
is a co-investment with Goldman Sachs through a partnership with the United
Way of Salt Lake that will, in its initial phase starting September 2013,
provide preschool for 450 disadvantaged children who would otherwise be wait
listed because of limited government resources. Services will be provided at
no upfront costs to taxpayers, with investor returns determined by student
achievement. This program is expected to be scaled to serve more disadvantaged
children in the future.

“Access to early education gives children a foundation they will build upon
throughout their education and beyond,” said Lloyd C. Blankfein, Chairman and
Chief Executive Officer of Goldman Sachs. “Through this innovative financing,
we are pleased to partner with J.B. Pritzker and the United Way of Salt Lake
to provide the opportunity to thousands of children who otherwise may not have
been able to attend preschool.”

The Early Childhood Innovation Accelerator seeks to improve the lives of
children from birth to age five by breaking down barriers to increased state
and federal support for high-quality early learning programs. In addition, the
Accelerator seeks to stimulate innovation and unlock greater private
investment for efforts aimed at disadvantaged infants, toddlers and their

The Accelerator, seeded by The Pritzker Children’s Initiative, a project of
the J.B. and M.K. Pritzker Family Foundation, to date has raised $20 million
from investors including other private foundations and co investors including
Goldman Sachs. Its purpose is to rapidly increase the availability of
high-quality early childhood learning opportunities, while building measurable
successes backed by evidence, accountability and results.

“Investing early and intelligently in the development of infants, toddlers and
preschoolers significantly improves educational outcomes. Early learning
reduces social and economic inequality and builds a better workforce and a
stronger nation,” said J.B. Pritzker, president of the J.B. and M.K. Pritzker
Family Foundation.

Deborah Bayle, president and CEO of United Way of Salt Lake, added, “We are
committed to solving our community’s most complex social problems. Without
high quality, early education opportunities, it will not be possible to
achieve our State’s goals of 90 percent proficiency in core subjects, 90
percent high school graduation, and 66 percent of Utahns with a post-secondary
education. That is why United Way of Salt Lake is proud to be part of this
groundbreaking financing model.”

Under this novel public-private partnership, philanthropists and investors
finance innovations which can then be scaled up to provide more children with
higher-quality early childhood programs. Research consistently shows such
programs result in superior long-term education, health, social and economic
outcomes, particularly for disadvantaged children and their families. In cases
like the Utah social impact bond, special education costs are reduced through
high-quality early learning programs.

Initially the ECIA will make three investments:

  *Alongside Goldman Sachs’ $4.6 million commitment, and in partnership with
    the United Way of Salt Lake, the Accelerator will commit $2.4 million
    towards the Early Childhood Education Social Impact loan. In the first
    year, 450 children will come off the wait list and be placed into
    high-quality Pre-K in Salt Lake’s Granite School District. Without private
    capital from the Accelerator and other investors, these disadvantaged
    three-and four-year old children would not receive early learning

    This loan and the program services will be administered by the United Way
    of Salt Lake. The investment was chosen because Utah studies conducted
    since 2006 by Utah Voices for Children found similar interventions
    resulted in substantial direct cost-savings.

  *Venture investment in Acelero Learning, a nationally recognized operator
    of outperforming Head Start and Early Head Start programs, which will use
    the Accelerator’s investment to scale its data-driven methodology for
    driving improved outcomes for low-income children.
  *Direct grant for the City of Chicago’s comprehensive early childhood
    education web portal ( This interactive
    bilingual tool serves as a one-stop-shop for parents to find local
    high-quality pre-K programs and get information on their quality.

The concept of creating an Early Childhood Innovation Accelerator was
initially announced at last year’s CGI America. Imprint Capital Advisors was
then engaged by Pritzker to develop and build-out the Accelerator prototype
for these social investments.

Working in tandem with an investment committee, the Accelerator will also be
guided by an advisory panel headed by national and international early
childhood expert Dr. Joan Lombardi, who will lead a team of professionals
evaluating the extent to which prospective investments will favorably impact
the early learning field.

About J.B. and M.K. Pritzker Family Foundation

The J.B. and M.K. Pritzker Family Foundation has as one of its primary focus
areas the enhancement of early learning capabilities of infants and toddlers,
with a special focus on at-risk children and their families. The Foundation is
a private family foundation deeply committed to the pursuit of social justice
and to shaping innovative and effective strategies for solving society’s most
challenging problems. Among the initiatives supported by the foundation are
the Pritzker Consortium on Early Childhood Development, a research
collaborative led by Nobel Laureate economist James Heckman of the University
of Chicago; the First Five Years Fund, a national early childhood advocacy
project; and the Ounce of Prevention Fund, one of the nation’s leading
providers of programs, research and policy focused on helping at-risk infants
and toddlers and their families.

About the Goldman Sachs Urban Investment Group

Established in 2001, the Urban Investment Group deploys the firm's capital by
making investments and loans that benefit urban communities. Through its
comprehensive community development platform, UIG is a catalyst in the
revitalization of underserved neighborhoods and the creation of economic
opportunities for disadvantaged families. UIG has committed more than $2.8
billion, facilitating the development of 13,200 units of housing, dozens of
community facilities, vital retail and commercial space as well as generating
thousands of jobs.”

About the United Way of Salt Lake

United Way of Salt Lake is working to advance the education, income, and
health of our neighborhoods and communities to ensure that every child
succeeds, every step of the way, from cradle to career. We invite everyone to
be a part of the change. You can give, you can advocate, and you can
volunteer. That's what it means to LIVE UNITED. Join the conversation by
visiting our blog at, or find out more at


Aileron Communications
Sheridan Chaney, 312-629-9400
Dave Lundy, 312-953-1122
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