Lumni USA – California Futures Fund

Founded in 2002, Lumni is a impact investment management company created to help make higher education affordable for more people. In the United States, even after exhausting financial aid options, the average student is left with a $5,000 balance for which they must find alternative financing. Lumni provides a flexible source of financing to cover that gap in funding. Instead of a loan, the student agrees to pay a percentage of their income, around 4-8%, for 120 months after graduation. We find that this strategy is especially compelling to lower-income and immigrant families that are debt averse and therefore uncomfortable with traditional student loans. In addition, our alternative credit worthiness test judges students on their drive and potential and not on their parents' credit score. Finally, we provide career counseling and a mentoring network for the students that gives them the best chance of being able to repay the fund.

Currently, Lumni USA's parent company, Lumni Inc (headquartered in Bogota, Colombia) has $17mln under management and is funding approximately 2000 students in Mexico, Chile, and Colombia.

The California Futures Fund seeks to raise an aggregate maximum of 22,000,000 by the sale and issuance of Promissory Notes. The Notes are not secured.

For more information please visit: http://www.lumniusa.net/

Financial description

The Fund will use a human capital financing model in which the Fund and the students who are selected by the Fund to receive financing will enter into a Human Capital Contract, which will require Funded Students to pay a fixed, pre-determined percentage of their income for a fixed period of time (typically 120 working months). The Fund plans to repay investors their investment amount, plus interest accrued thereon using revenue earned through this business model.
The Fund seeks to raise an aggregate maximum of 22,000,000 by the sale and issuance of Promissory Notes. The Notes are not secured.