Lumni is a pioneer in the field of human capital financing. The company designs and manages social-investment funds that invest in the education of diversified pools of students. In exchange, each student commits to pay a fixed percentage of income for 120 months after graduation. The student’s obligation is complete at the end of that period regardless of the sum paid to date. Under this design, students face little risk of overly burdensome debt payments, providing peace of mind for the debt-averse populations that are most in need of funding.
Lumni brings together students and investors in a win-win partnership. The model allows individuals and institutions to invest in their community’s most valuable asset: the future of its youth. In exchange, students receive the flexible source of financing they need to complete their education and pursue their dreams. Lumni’s fund management model allows for a broad range of different type of projects, each with its own distinct characteristics. Funds may serve students from different demographic groups, focus on a particular city or region, or offer investors different levels of social and financial return on investment.
Lumni currently operates both for-profit and non-profit funds in Chile, Colombia, Mexico and the United States, where it has raised and obtained commitments of more than $15 million from over 100 investors. Lumni has financed nearly 2,000 students to date, nearly all from low or very low-income backgrounds where funding recipients are the first family members to attend college.