MBA Community Loans – Note Series
Last updated 12 May 2020, by Impactyield.
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.
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.
of track record
the year funded
Key performance indicators
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: United Kingdom
Product status: Open - committed capital
Inception year: 2015
Vintage year: n.a.
Target region: Global
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
Currency of investments: EUR (Euro)
Currency for fund / product figures: EUR (Euro)
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
Phone number: +44(0) 207 193 2832
If you wish to have your details removed from this database please email firstname.lastname@example.org
Co-founder and CEO
Business Development Manager
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.