Lumni USA – California Futures Fund
United States of America
Last updated 13 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / United States of America (112)
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/
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.
of track record
the year funded
Headquarters location: United States of America
Other funds managed by this asset manager: LUMNI USA II, LP
Key performance indicators
Asset manager: Lumni USA
Product track record: Fund has 13 years of track record
Target IRR: 1.5%
Committed Capital: 200,000 USD (US Dollar)
Target return category: Below risk-adjusted market-rate of return
Fund domicile: United States of America
Product status: Open - committed capital
Inception year: 2010
Vintage year: n.a.
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), United States of America
Target close date: n.a.
Product term: 10
Assets under management: 22,000,000 USD (US Dollar)
Investment size: Min: 3,000; Max: 12,000; Avg: 6,000
Currency of investments: USD (US Dollar)
Currency for fund / product figures: USD (US Dollar)
Fund investments to date: 5
Fund investments to date exited or repaid: 0
Management fee: n.a.
Carried interest: n.a.
Hurdle rate: n.a.
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
E-mail: firstname.lastname@example.org email@example.com
Phone number: 415-984-0442
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Co-Founder & CEO
VP - Sales
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. The program is different from existing loan options because unlike traditional loans with fixed monthly payments, the student agrees to pay a percentage of their income, around 4-8%, for 120 months after graduation.
This straightforward repayment method sets Lumni apart from typical bank loans. After graduating, recipients pay less when they earn less and more when they can afford it. The student is not responsible for paying anything after those 120 months regardless of how much or how little they have paid. The exact percentage of future income they are committed to pay varies based on a number of factors including a student's school, time until college graduation, grades, and major. Also, Lumni believes that all students should have the chance to succeed, so the lending decisions are based on each student's future potential and not on their family's income or credit. There is no credit check or cosigner required since the financing is based on future income and not current economic status of a student or their family.
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