Prodigy Finance secures $ 750 million in funding to expand into new markets

The transaction not only allows Prodigy Finance to continue to meet the growing demand for international student loans – with applications increasing by 50% year over year – but it now also allows Prodigy Finance to accept applications from students from a range of markets that it previously did Eligibility restrictions in 2020 were excluded due to payment deadlines.

These regions include China, Australia, Bangladesh, South Korea, Spain, Chile, Singapore, France, Germany, Italy, Japan, and most of South American countries.

The latest investment comes in addition to a facility of 250 million. This DFC funding will be used to provide loans to PhD students with a focus on low and middle income countries (50% or more) and women (30% or more).

To be able to offer international loans to students from these key regions – China alone sends more than 100,000 students to the UK and more than 300,000 to the US each year, while US and Canadian schools send 57% and 35% of students out, respectively additional markets are coming to these regions – it will enable Prodigy Finance to significantly increase the number of students it supports. The expanded market will also align Prodigy Finance even better with the 800+ global schools on its platform and their strategic plans to attract different classes. Schools’ ability to attract the very best diverse talent has been dramatically hampered by travel and visa restrictions in the wake of Covid. These global schools are trying to reverse the reduced enrollments in the fall after the number of new international students declined by 43% in the US alone last year.

Prodigy Finance’s business model is based on the idea that access to finance for international graduate education should be limitless and based on future potential rather than current circumstances. It shouldn’t matter where a student was born or lives, or how wealthy their family is, but based on their having access to the education they need to reach their potential. While loans to students from around the world are granted under the UK Consumer Credit Regulations, Prodigy Finance’s payment solutions make it possible to connect with borrowers and collect loans regardless of where they are based after graduation.

To date, Prodigy Finance has funded more than $ 1 billion in graduate loans to more than 20,000 promising students from over 100 countries. Prodigy Finance draws its loans on the basis of its proprietary loan model “Future Earning Potential”, thereby helping those who do not have traditional sources of funding or guarantors to study at the best universities in the world. According to the Impact Report, 89% of these borrowers said they had limited or no other options to fund their studies, 99.77% of them successfully completed their courses, and 72% said their postgraduate degrees enabled them to pursue their dream careers to pursue.

The company has seen a significant improvement in portfolio performance as its highly skilled borrowers benefit from a revitalization of attitudes in business, technology and career after graduation. Prodigy Finance has also set a milestone in 2021 after issuing the first Asset-Backed Securitization (SL ABS) for student loans with investment grade rating. This issue and first-time introduction of social bonds, which first took place as part of Prodigy Finance’s social bond framework, brought major public market investors and asset managers to Prodigy Finance for the first time.

Joel Frisch, Head of Global Acquisition at Prodigy Finance, said, “We have always believed that talent is limitless and that finance should be too. So we’re excited to be able to support students from all of these additional countries now. Overall, we can now help students from over 120 countries around the world and we want to continue to lead the way when it comes to helping global talent reach their true potential. “

Neha Sethi, Head of Capital Markets, added, “Reaching this important funding milestone is another step towards our goal of helping over 25,000 students each year.”

Derek Jackson, Managing Director, Head of European Credit, CPP Investments, said, “This financial commitment to Prodigy Finance is a great example of our ability to provide flexible financing solutions to complex business needs and it fits well with CPP Investments’ lending strategy, our patient capital with leaders Partner organizations. ”