Edly

In the U.S., $1.6 trillion worth of student loans are outstanding and are owed by over 45 million people. On its current pace, student debt is estimated to reach $2 trillion in the next three years.  Student debt can be a long-term burden on graduates, and the U.S. Department of Education predicts lifetime default rates for some federal loan categories to reach double digits for the 2018 graduating class alone. Income share agreements (ISAs) are an alternative way for students to finance their education and have accelerated in popularity over the last five years due to rising student debt. By signing an ISA instead of taking out a loan, students agree to repay their education costs by committing a certain percentage of their income over a certain number of years or until they hit a payment cap. It’s estimated that over $500 million of ISAs will be originated by end of this year.

Edly is an ISA marketplace and allows investors to invest in education with the goal of receiving a percentage of a students’ future earnings. By partnering with schools and professional training programs, Edly has grown its portfolio to include over 2,500 ISAs. Edly manages initial school screening and creation of the ISA, to collecting payment collection from students, and distributions to investors. The company believes its school-selection process and intuitive investment platform are differentiating factors that give it a competitive edge. According to Credit Karma, Edly’s goal of turning ISAs into a professional asset class is its major market contribution to the ISA market.

Generated over $380,000 in revenue in the first five months of 2020
Investors have used the ISA marketplace to invest in over 2,500 students
Students represent some of the most successful programs in the country
Considered a market leader in the ISA market by Credit Karmai

Minimum use of proceeds breakdown:

• Intermediary Fees: $750
• General Marketing: $6,250
• Research and Development: $2,500
• Future Wages: $10,000
• General Working Capital: $5,500

Maximum use of proceeds breakdown:

• Intermediary Fees: $60,000
• General Marketing: $500,000
• Research and Development: $200,000
• Future Wages: $800,000
• General Working Capital: $440,000

Chris Ricciardi
Co-Founder and CEO
Chris brings over 30 years of management experience to the team and currently serves as CEO of the company. Prior to co-founding Edly, he was a Principal at Mead Park Management, an investment management company that focuses on credit and structured credit. Chris was also president and CEO of Cohen & Company, a financial services company that manages several credit funds.xxxv Chris also held group head- and managing director-level roles at Merrill Lynch, Credit Suisse, and Prudential. He holds a bachelor’s degree in economics from the University of Richmond, an MBA from the University of Pennsylvania, and has a Chartered Financial Analyst designation.

Charles Trafton
Co-Founder and President
Charles has extensive experience within the financial services industry and co-founded Edly. Along with his role as president of the company, Charles is a lead portfolio manager at Flowpoint Capital, where he manages a multi-strategy K-20 education fund that invests in EdTech and EdFinance sectors.xxxvi He was also a portfolio manager at The Boston Company Asset Management, where he reportedly managed $450 million of BNY Mellon’s Small-Mid Cap fund.xxxvii Charles holds a bachelor’s degree in finance from Boston College.

In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the price per share paid on a $12.5 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.