MBA Community Loans – Note Series

United Kingdom

Last updated 12 May 2020, by Impactyield.

Edit this fund

Fund geography

Global (48)

Prodigy Finance is a social enterprise that funds international students at top business schools, educating the global leaders of tomorrow. Through our community platform, alumni and other investors purchase Prodigy Finance bonds, each of which funds loans for specific class at a specific school. Investors receive low-risk, competitive returns, while students gain access to higher education they otherwise could not afford. Since 2007, we have disbursed $50 million to over 1200 students, with exceptional loan repayment.

Our diversified portfolio includes student borrowers from 84 nationalities, attending top 50 ranked universities like London Business School, INSEAD, and Oxford Saïd Business School. 75% of our borrowers come from developing world countries; 34% come from BRIC nations alone. We are also filling an important market gap: because traditional banks struggle to loan internationally, 82% of our student borrowers report that they had no alternative funding options.


Asset class

Fund style

Not listed


Financial description

Structure: Each bond funds a specific class at a specific school. The bonds are listed on the Irish Stock Exchange.
Oversight: Each bond series is managed by Capita and audited annually by KPMG.
Return: The target interest rates for different schools/series are slightly different, but are variable (above 3m Euribor or Libor), providing it with inflation protection.
Repayment: The capital is repaid over the life of the bond (8.5 years for European schools), and the weighted average life for European schools is about 4.5 years.
Other key characteristics of our investment products:
- Our predictive affordability scorecard prices risk based on students’ earning potential. This model is particularly important for top MBA students, who boast average salary increases of 112% after graduation.
- Prodigy Finance bonds are secure, premium, and diversified.
- The portfolio of students is internationally diverse and super-prime, with low correlation to general market performance.
- Our robust legal framework allows us to fund student borrowers at 150 countries.

8 years

of track record

2015

the year funded

n.a.

AUM

Asset manager

Prodigy Finance

Website

Headquarters location:

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Free primary and secondary education

Full employment and decent work with equal pay

Increase aid for trade support

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: Prodigy Finance

Product track record: Fund has 8 years of track record

Target IRR: 5%

Committed Capital: 27,240,800 EUR (Euro)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage:

Inception year: 2015

Vintage year: n.a.

Target region:

Target close date: n.a.

Product term: 8.5 year term notes

Assets under management: n.a.

Investment size: Min: 400,000; Max: 0; Avg: 0

Co-investment policy:

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 1

Fund investments to date exited or repaid: 127

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: Endowments/Foundations, Family Office, Other Institutional Investors, Retail Investors

Contact

E-mail: n.a.

Website: http://prodigyfinance.com/investor_home

Phone number: +44(0) 207 193 2832

If you wish to have your details removed from this database please email gdpr@impactyield.com


Cameron Stevens

Co-founder and CEO

Charlotte Lau

Business Development Manager

Impact Performance

n.a.

Impact thesis

We currently focus on students attending business school abroad, with a particular emphasis on those from the developing world, who make up 75% of our loan portfolio. The vast majority of these individuals (82%) do not have access to traditional sources of funding. We believe that by filling this gap, we encourage cross-border and cross-cultural learning and understanding. The students we fund build stronger international networks that contribute to a globalizing economy.
Other key stats include:
- Studies suggest that international exchange, and the diversity of perspectives it brings about, encourage creativity: a 10% increase in international graduate students is correlated with a 5% increase in patent applications and grants.
- The majority of developing world students returned to their home countries after graduation, becoming business and political leaders who create jobs and advance economies.
- The post-MBA salary increase for developing world citizens is 130%, markedly higher than the increase for developed world citizens (38%). Our limited data suggests this trend holds true among developing world students who return to the developing world (141%).
We are supporting 8+ different post-MBA entrepreneurs, who are creating jobs in India, Kazakhstan, and the Middle East.

Impact Management

n.a.

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