Avenify's model targets a 7-9% IRR for our investors, net of our fees.
If you invest $10,000, we will collect $200 up-front, and $9,800 will be disbursed to students. Once the student starts making payments, Avenify will collect 1.5% of each payment, and 98.5% of each payment will be returned to investors.
For a student who borrows $9,800 and is expected to earn $60,000 per year initially, with 3.5% salary growth afterwards, their income share would be set at 3.47%. At these terms (and factoring in unemployment and default risk), they would pay back around $22,000 over the course of their 120-month ISA. One-and-a-half percent of those payments, or about $330, would go to Avenify; the remaining $21,670 would be returned to investors.
In this example, with an initial investment of $10,000, a period of 135 months (120-month ISA plus 15-month deferment for studies), and a return to investors of $21,670 (after fees), the IRR for investors would be 7.12%.
The Economist reported that similar ISA funds have seen historical returns in line with Avenify's model.
The historical performance of similar programs is in no way intended to predict Avenify’s performance and is no guarantee of future results. Individual results may vary - this information is not presented as investment advice.