The Social Impact Behind Investor Returns

 

Earlier this year we released a report that outlined the Key Performance Indicators for the students we have backed and outlined how those KPIs contribute to investor returns. But we are a social enterprise that also cares deeply about our students and aspires to deliver both social and financial returns.

Impact Results:

Investors are seeking a return and often our reporting focuses on the numbers. But there are real people behind every number on our financial reports--students who are studying hard to pass their classes, and working with their mentors to transition into the career they’ve dreamed about.

 
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The above table shows the forecast and actual KPIs for our students. These KPIs can easily be translated into financial returns, but it’s also worthwhile to consider some of the KPIs within the context of social impact returns:

  • 0% Unemployment: Our entire business is predicated on the idea that we can successfully help students complete degrees with great job prospects and successfully make the transition from school to career. An unemployment rate of 0% is something to be proud of. Every one of our graduates has been able to find work and begin reaping the rewards of their education.
  • 0% Dropouts: At Brighter Investment we provide full financial support to students, not just room and board. We also set them up with mentors and other resources to ensure they feel they are thriving in school and minimize dropout rates. A 0% dropout rate is a sign that our resources are successful and students receiving Brighter Investment support are more likely to stay in school than the average student.
  • 0% Defaults: The income-based repayment model means that students will only default if they are consciously trying to take advantage of the program. Students feel an affinity for Brighter Investment and clearly want to see us grow to support other students like them.
  • +1.1% Salary Levels: Our students, despite coming from disadvantaged backgrounds, are earning more than their peers with the same degrees. We see this as further confirmation that we are truly selecting above-average students and setting them up for career success. Our graduates are also earning 5 times as much as what they would have earned without a degree.

Investments support more students:

A question we are frequently asked is why we aren’t offering scholarships instead of income sharing agreements. And the answer is encapsulated in the below chart: by reinvesting the proceeds for 12 years the same funds can support almost 3 times as many students. And if our students continue outperforming the projections that leverage will be even greater.

 
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Tyson Titensor