MPOWER Financing, a fin-tech company that specializes in providing student loans for international students, has announced via press release that they have launched a $100 million debt financing round to keep up with the demand for educational loans.
MPOWER Financing has cut out a unique niche in the student loan industry. Whereas most lending companies focus their attention on U.S. students, MPOWER looks to provide student loans to international students with high promise for success.
If this $100 million debt financing round is any indication, it appears that MPOWER’s business model is working quite well.
Manu Smadja, CEO and co-founder of MPOWER, issued the following statement for the press release: “We are seeing tremendous demand for our unique lending product which removes financial barriers to higher education for top international students. The company’s loan book has been growing at a rate of more than 30 percent on a month-over-month basis.”
Also announced in the press release was MPOWER’s new chief investment officer (CIO). Mike Davis, one of the co-founders of MPOWER, has been tabbed as the company’s new CIO. Davis replaces Alonso Garza, who will join the the student loan organization’s advisory board.
In addition to his new board seat, Garza will also be brought on as a consultant for MPOWER’s Latin American business, which is based in Mexico City.
Newly minted CIO Mike Davis was the brains behind MPOWER’s first few successful equity rounds, in addition to the company’s first debt financing deal. Davis is knowledgeable in all of MPOWER’s businesses, and, according to the press release, is collaborating with his predecessor to guarantee a flawless transition.
Additionally, Mr. Davis will operate out of MPOWER’s new office in the financial district of New York City.
Founded in 2014, MPOWER Financing has been able to raise $34.5 million in debt and equity funding. Major investment institutions that have funded MPOWER include Zephyr, Village Capital, GS2, and VARIV Capital.
In recent weeks, the student loan industry has seen a couple of investments and one company that is looking to be purchased. Coincidentally, LendEDU recently covered GS2’s closing of a $2 million credit facility in order to fund one school’s curriculum, facilities, and faculty. GS2 is the same company that has invested in MPOWER Financing. Last week, Bloomberg reported that student loan refinancing company Earnest is teaming up with Barclays to find a buyer willing to spend $200 million on the company.
Author: Dave Rathmanner
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