Prodigy Finance Bonds: A Secure and Ethical Investment June 2013 | Private and Confidential
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Prodigy Finance Bonds:
A Secure and Ethical Investment
June 2013 | Private and Confidential
Prodigy Finance at a glance
Prodigy Finance’s proven model of
education finance allows investors to fund 18 full time employees.
a pool of super-premium international
students at the world’s top universities. $3.3m in venture capital from 7
of Europe’s leading financial services
professionals and entrepreneurs.
Truly international: 150 countries covered.
$36m+ invested and distributed
to 820+ MBAs from 84 nationalities.
99.9% performing loans since repayments
started in 2009.
Headquartered in
London (2007) | Operations in
Cape Town (2010) | Business development
Office in Boston (2012)
As featured in:
3 I Private and confidential
The Problem
Despite excellent credit quality, FUNDING GAP
international students have a International students have a funding
problem getting funding. problem.
60% of MBAs at top European schools
are affected.
“Due to China banks’
limitations, I don't have 82% of our student borrowers
had no alternative funding
any options” options.
Jie Hong, Chinese
Living in Beijing
FEW PROVIDERS
“A whole group of us • Competition is fragmented and generally
have been waiting 2-3 limited to domestic markets
months for a decision.” • Banks struggle to lend internationally
Fernando, Brazilian despite excellent credit quality.
Living in London • Following the economic crisis, many
banks have withdrawn from the
postgraduate lending sector entirely.
• School programmes that exist in the USA
require unsustainable school guarantees.
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Our Solution Social Pressure
We have developed an international Alumni invest in a bond that funds a
class of students. Alumni can view the
graduate loan programme that is repayment status of students online.
both innovative and rigorous. Late payment immediately affects a
student’s standing in the community,
wherever they are in the world.
Proprietary scorecard to assess Investment Bonds are
structured to cost-effectively fund a
Future Earning Potential small class of students, while being
built on thousands of data points.
exchange listed, tradeable and
Provides a statistical view on a available to Retail and Institutional
graduate’s future debt to income ratio. clients across the EU and USA.
Risk Screening of every Legal Model developed
applicant in their home country with Freshfields that enhances
using the best available data from enforceability in 150 countries.
bureaus to private investigators.
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Great Results 820 BORROWERS
Our model delivers exceptional performance across a 29 YEARS AVG AGE
very international base with a focus on premium schools. $120K AVG SALARY
$43K AVG LOAN
99.9%
Performing Loans
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Global Impact
Our borrowers are future leaders from diverse countries,
making Prodigy bonds smart and ethical investments.
82% of our borrowers say they had no
alternative funding options.
75% of our student borrowers come from
the developing world, 66% of whom return
home after graduation.
34% of our student borrowers come from
BRIC countries.
7+ Prodigy fundees have already founded
new companies after graduating, creating
jobs in India, Russia, and the Middle East.
Map$of$our$student$borrowers’$top$20$countries$of$origin$
“If it hadn’t been for Prodigy, I wouldn’t have been able to attend INSEAD….
You’re a team full of smarts and hearts.”
-Ayesha, INSEAD ’11, Indian
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Funding Structure
Excellent loan book performance and a robust structure has
provided stable yield to investors since 2007.
LOANS TO STUDENTS SPV | MBA
Average of 7.5% (Range of 5-9%) Community Loans plc
Linked to Libor INSEAD
€
BONDS TO
HARVARD
INVESTORS
$ 5% p.a.
Linked to Libor
OXFORD
£
1. 2. 3. 4.
Loans are originated by Loans are assigned to an The SPV issues university Alumni investors can
Prodigy under partnership SPV managed by world specific bonds to investors. purchase bonds for their
with universities. Universities class service providers. Bonds are listed on the Irish particular school. Other
refund amounts for any students Stock Exchange and settled investors can invest across
expelled or dropped out. through Euroclear / Clearstream. all the university bonds.
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Team SHAREHOLDERS
Prodigy Finance’s team and shareholders ˃ David Stevens: Co-founder and COO
are seasoned entrepreneurs and leading Admiral Group (FTSE100)
financial services professionals. ˃ Alan Morgan (Board): Co-Founder of MMC
Ventures; previously Head of McKinsey &
Co’s Financial Services Practices in EMEA
Cameron Stevens Ryan Steele ˃ Michael Butt: Chairman, Axis Capital (a
CEO COO leading insurance and re-insurance group
Co-founded a corporate Head of risk for the credit
advisory firm in South East
with a market cap of $6.3bn)
card division of a leading
Asia which successfully bank; responsible for credit ˃ Michael Ullmann (Board): Entrepreneur
listed a client technology policy and risk management and angel investor in over 40 companies
company on the Malaysian for a 750,000 consumer base
stock exchange. and $450 million asset book. including Active Hotels
B.Bus.Sci. (Finance Hons) MSc. Industrial Engineering ˃ Nick Clayton (Board): Angel investor who
and MBA INSEAD and MBA INSEAD
founded and exited two financial services
businesses in Asia
˃ Dr Andy Phillipps: Serial Entrepreneur,
Alastair Hops Jeremy Rabson previously Founder and CEO of ActiveHotels
CFO President, USA Operations which was sold to Priceline for $161 million
10 years experience in the More than 15 years experience
˃ Dr Egbert P. Willam: Chairman Ken Private
financial services industry. in strategy and consumer
Oversaw finances for a businesses; 10 years in financial Equity; formerly Board of Management of
London tech accessories services, including senior roles Cologne Reinsurance Group, the world’s
startup-turned-global-brand, at First Marblehead and Capital
with outlets in 25 countries. One. BA Yale University and oldest Reinsurance group with activities
B.Sc. and Chartered MBA Stanford Graduate School in 150 countries
Accountant (South Africa). of Business
9 I Private and confidentialThank you.
Cameron Stevens Charlotte Lau
CEO and Co-Founder Business Development Manager
+44 (0) 207 193 2832 +44 (0) 207 193 2832
+44 (0) 7852 501 232 +27 (76) 826 0999
@ cstevens@prodigyfinance.com @ clau@prodigyfinance.com
Prodigy Finance Ltd.
Palladium House, 1-4 Argyll Street, London W1F 7LD, United Kingdom
t: +44 (0) 20 7193 2832 | f: +44 (0) 20 7681 3270
e: info@prodigyfinance.com | www.prodigyfinance.com
London | Cape Town | Boston!
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