Establishing a social investment partnership can be a good idea for both municipalities and private investors. The municipality will generate welfare for its citizens, for instance if the project is intended to get people out of unemployment or cure them of drug addiction. At the same time, the municipality will save money. The investors, often pension funds, will receive a return on their investment if the project meets the criteria for success – all while doing a good deed.
However, the law in this area is often complex. Among other things, it is important for the municipality and the investor to take into account the rules governing municipal government, procurement law and state aid law.