ST. LOUIS, May 7, 2018 /PRNewswire/ -- Lumni, an international financial technology company focused on increasing the affordability and accessibility of higher education, announced today the signing of a deal to acquire Base Capital (Base), a Saint Louis-based platform for income share agreements (ISAs), for a mixture of cash and stock. ISAs are a novel alternative to student loans that allow students to receive upfront funding in exchange for a fixed percentage of their income for a set period of time.
Lumni is the world's largest and most-established player in the emerging ISA space, having originated and serviced nearly 10,000 ISAs across Latin America. The Base acquisition marks the beginning of Lumni's expansion into North America at a time when ISAs have rapidly gained traction in the U.S. over the past two years, most notably with Purdue University launching a pilot program in 2016 and two federal bills – which the team at Base was involved in crafting - gaining swift bipartisan support in Congress after being introduced last year.
Brendan Florez, Founder and CEO of Base, will join Lumni as co-founder & CEO of Lumni's U.S. subsidiary, Lumni USA.
"We're delighted to have the Base team joining the Lumni family," said Felipe Vergara, co-founder and CEO of Lumni. Inc. "We've been extremely impressed with the work they've done in catalyzing the growth of the ISA market in the U.S. and they bring an incredible amount of talent and knowledge to our team that will help us accomplish our mission both here in the U.S. and internationally."
"Lumni has an unmatched track record of 'student-first' social impact in the ISA space," said Mr. Florez. "and a set of data and know-how that's difficult to replicate. I feel confident that with our combined strength we can be well positioned to solve some of the most pressing problems in higher ed today."
Founded in 2002, Lumni is the world's largest financial technology company focused on income share agreements, with nearly 10,000 students funded throughout Colombia, Mexico, Peru, Chile, and the U.S. Lumni has been recognized for its excellence in social impact by the World Economic Forum, Bloomberg, Endeavor, Ashoka, the Inter-American Development Bank, and the Clinton Global Initiative.
Base is a technology company at the intersection of finance and education. Base has pioneered the use Income Share Agreements in the United States in attempt to address the systemic problems in postsecondary education.