LUMNI USA II, LP

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.

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

Financial description

Lumni USA II, LP seeks to preserve investor capital and create competitive market returns through investment directly in students. Fund investors are limited partners. The Partnership’s investment objective is to realize a return on student financing that is repaid based on set percentage of students’ post graduation income (rather than a fixed interest rate) for a fixed period of time. Student remuneration is passed directly to limited partners in an annual payment, less all applicable fees.