US-based investment firm Carlyle has announced the acquisition of a $415m private student loan portfolio from Truist Bank.
The American company has also made a strategic investment into Monogram, a provider of finance solutions for students and their families. The investment was led by the former management team of Cognition Financial and supported by Carlyle.
Monogram and Carlyle will collaborate to initiate, acquire, and oversee premium third-party private student loan assets.
Carlyle managing director and head Akhil Bansal said: “There is an opportunity for private markets to fill the gap left by traditional lenders reducing their lending to families to finance their higher education goals.
“Carlyle is excited to partner with Monogram to deliver attractive and competitive financing solutions to the private student loan market.”
Established in 1991, Monogram focuses on making financial resources accessible for students and their families to pursue higher education.
The firm’s platform offers a fully outsourced, end-to-end private student loan solution for lenders. It is designed to be flexible and assists lending partners in finding risk profiles that align with their portfolio objectives.
Besides, its advanced loan origination platform, credit databases, and loan-performance analytics allow banks, affinity groups and other institutions to provide new private student loan products to their customers.
Monogram’s product offerings include customisable private-label programmes, school sales and marketing support, active portfolio management, and loan loss protection.
Currently, the firm has over $7bn in private student loans under management.
Monogram CEO Seth Gelber said: “Monogram has the data and analytics capabilities previously part of First Marblehead and Cognition Financial, and a management team with more than a century of expertise in the student loan industry.
“Now, with the financial backing of Carlyle, we’re better positioned to help all types of borrowers.”
