MPOWER Financing, a Washington-based Fintech Firm, announced that it had secured a $150 million debt funding from Goldman Sachs to expand its growing portfolio of student loans.
MPOWER Financing is an education loan provider to students from over 200 countries studying in over 400 universities across the U.S. and Canada.
The company’s loan procedure is entirely digital, and up to 45% of its clients are first-generation college students majoring in science, technology, engineering, or mathematics. To assist prospective foreign and Deferred Action for Childhood Arrivals (DACA) students, the company’s algorithm examines abroad and local credit records and future earning potential.
The head of capital markets at MPOWER Financing, Christopher Zaki, said: “Goldman Sachs has an established track record of raising and providing capital to innovative fintech”, and he believes that “MPOWER’s growth trajectory, portfolio performance and global ecosystem supporting students around the world aligns with previous relationships in the sector.”
The funding from Goldman is in the form of an asset-backed warehouse facility and is accompanied by similar financing from Deutsche Bank in 2022. Moreover, in 2021 MPOWER also raised equity capital worth $100 million from a consortium of investors, including King Street Capital Management and Tilden Park Capital Management.
Manu Smadja, Co-founder and CEO of MPOWER, said, “We contribute to the important mission of making higher education and socioeconomic mobility accessible o the millions of international and DACA students” while expressing joy for Goldman’s support.