Principal Protected ISA Pool

TECHNOLOGY (CODING)

Lambda School – 1,000 ISAs

Lambda School offers online learning in four fields: data science, full-stack web development, iOS development and UX design.

Lambda’s return on student investment is attractive: average salary before enrollment is $22,475 vs. an average salary of hired graduates of $75,238.

edly offers the principal protected structure for investors who want to get access to ISA investments and some of the target yield that the ISAs offer without as much risk as direct investments. Investors with a higher risk appetite who are seeking higher target yields can make direct ISA investments.

How it works: Principal Protected ISA Pool

Principal Protected ISA Pool – 1,000 Lambda School ISAs

8.5% target yield, 4 year expected term, principal protected

Get access to high target yields of Lambda ISA Pool with investment principal protected by US Treasury STRIPs

How it works –

edly’s Principal Protected ISA Pools (“PPIP”) offer investors the benefits of direct ISA pool investing while having their investment backed by STRIPS. PPIP is a managed product in which edly will manage a STRIP investment so that the amount invested by investors is always backed by STRIPs if held to maturity. edly manages the product to efficiently make use of the STRIPS to protect principal while still seeking a high target return from the ISA pool and a short duration.

The timing of the return of investment principal is impacted by the cash return of the ISA pool. In the base case, this PPIP has a 4 year target term. In a worst case (if there are no returns on the ISA pool), principal will be returned at 30 years.

edly offers this product for investors who want to get access to ISA investments and some of the target yield that the ISAs offer without as much risk as direct investments. Investors with a higher risk appetite who are seeking higher target yields can make direct ISA investments.

Lambda School ISA Pool – Why we like it

  • Strong Industry Demand

    Lambda School trains students to fill the many open and high-paying technical jobs available. There are 550,000 open IT jobs in the U.S., but universities graduated just 60,000 computer science majors last year.

  • School Experience:

    Historical outcomes of Lambda School students are attractive; graduates are employed with top employers including Nexient, Wayfair, Blue Cross/Blue Shield, and Infosys.

  • High Impact Investment

    The average salary of Lambda School students prior to enrolling is $22,475, while the average salary of hired Lambda School grads is $75,238.

  • Preferred Return

    Investors get all cash from the ISAs (payments received from ISAs in the pool, less servicing and management fees) until they achieve a 13% preferred return.

    Cash is then split between school (65%) and investors (35%).

How Investors are Protected

  • Principal Protection

    Get access to high target yields of Lambda ISA Pool with investment principal protected by US Treasury STRIPs.

  • Direct Investment in the Assets

    edly makes investments in the actual ISA assets (contracts with the students) or in loans to schools backed by ISA assets. This gives us the contractual right to the cash flows generated by the students upon employment.

  • Experienced ISA Servicers

    edly utilizes a third party to collect payments from students. edly only works with servicers it believes can effectively service the assets.

  • School ‘Skin in the Game’

    edly insists on school “skin in the game” – we will only make partial advances to schools and then our investors are in a senior position to the schools until investors have received a preferred rate of return. In order for the schools to get their full tuition, students must have good outcomes and investors must have good investment returns. Schools with poor outcomes are avoided or removed from our program.

  • Bankruptcy Remote Structure

    Investments are held in a bankruptcy-remove vehicle and edly never holds investor cash. Cash returns from investments are distributed to investors monthly.

  • Monthly Distribution Reporting

    Investors receive monthly statements of their investment returns and they may view their historical statements at any time on the edly platform using their secure login credentials.

More about Lambda School

Admissions

Education

Outcomes

source: Lambda School

Lambda School’s For-Profit Plan to Solve Student Debt
WIRED – Gregory Barber
August 2019
Lambda School Is Paying Students To Learn The Highest-Paying Skills In The World
Forbes – Jonathan Moed
April 2019

Historical Lambda Employers

source: Lambda School