Lumni provides opportunities for individuals and institutions to invest in the future of our most important resource: the minds of our youth. And because education provides so much value, investors earn a financial return in addition to the social return that is generated by their investment.
Social-investment funds designed by Lumni invest in the education of diversified pools of students. Each student then repays his or her obligation as a fixed percentage of income for a set a period of time. For each fund, Lumni’s analysts forecast individual students’ income curves and align student selection and contract pricing with stated objectives for financial and social return. Although the salary of any individual student is impossible to predict, Lumni pools these idiosyncratic risks through a portfolio of students.
To learn more, please contact: info.lumni@lumni.net.
Case Study: Bay Area Opportunity Fund, Lumni USA
The Bay Area Opportunity Fund is helping young adults who are residents of the San Francisco Bay Area cover their college costs using Lumni’s innovative system. The project is bringing together local social-investors who want to support the future of their own community and the young people who are the future of that community. Individuals can invest in local students in a variety of ways including through a tax-deductible donation or by purchasing a low-interest note with a fixed return. In addition to the dual financial and social return of this investment, contributors are helping prove an efficient, sustainable new system for giving students access to college without the burden of a traditional student loan.
For more information contact: info.usa@lumni.net.
Case Study: FAB 1, Lumni Chile
The FAB1 fund has financed 50 Chilean undergraduate students, each with extremely high academic and professional potential, but limited family resources to complete their degree. In addition to financing, Lumni has supported students with career coaching and networking services. Since the Fund’s inception seven years ago, graduates have gone on to surpass all expectations and become young leaders in their fields. The fund has enjoyed extremely low default with under 3% of graduates are delinquent in their payments at any one time. And even during the recent economic downturn, graduates showed substantially lower unemployment and higher salary growth than their peers. As a result, investors have earned nearly twice the fund’s 10% expected financial return on investment.
For more information contact: info.chile@lumni.net.
