Edly

Edly, Inc. was established in 2019 by co-founders Chris Ricci and Charles Trafton, positioning itself as a marketplace for income share agreements (ISAs). The company's business model centers on connecting students in need of education financing with investors looking for returns linked to student outcomes. Edly offers a platform where investors can purchase an interest in pools of ISAs, which are essentially contracts where students agree to pay a percentage of their income for a set period after graduation in exchange for tuition funding.

The firm primarily serves two distinct client bases: students and institutional investors. For students, particularly those pursuing specific professional programs like nursing, Edly provides an alternative to traditional private loans, helping them cover funding gaps left by federal aid. The core feature of its offering is the income-based repayment model; payments adjust based on the student's salary, and if a graduate's income falls below a certain threshold, payments are paused. This structure is designed to offer downside protection for students compared to the fixed obligations of conventional loans.

For investors, Edly provides access to a distinct asset class with returns correlated to graduate employment and earnings. The company generates revenue by managing this marketplace, likely through fees associated with originating the ISAs and managing the investment platform. Edly has facilitated significant funding, having originated over $50 million in ISAs for students by early 2021 and launching a $10 million offering on the Republic platform in the same year. This indicates a strategy of broadening its investor base to include accredited and non-accredited individuals alongside institutional capital.

Keywords: income share agreements, student financing, fintech, investment marketplace, education finance, ISA platform, alternative lending, impact investing, tuition funding, higher education