Student lender Future Finance clinches £119m growth capital
University loan service has taken total investment to £185m as it looks to "help more UK students access higher education"
Future Finance Loan Corporation, a business which provides tailored loans to UK university students, has raised £119m growth capital from QED Investors, Blackstone Strategic Opportunity Fund, and Colchis Capital.
The deal also attracted investment from Invus Opportunities, KCK, DW Partners, Fenway Summer Ventures, Ridge Road Partners, and 1/0 Capital.
Launched in 2014 and regulated by the Financial Conduct Authority (FCA), Future Finance provides loans of between £2,500 and £40,000 to undergraduates and postgraduates to pay for tuition and living expenses. The platform factors data such as continuation, employability and earnings into its lending decisions.
The company, which has partnerships with 33 UK universities, claims to have received more than 37,000 applications and lent almost £25m to date.
It will use this latest funding to provide more loans and enable “even more students to access higher education.”
Brian Norton, chief executive of Future Finance, commented:
“Our investors share our view that students with the motivation and the potential to succeed should not be denied a productive education. We are delighted to have the support of such experienced investors in high-growth financial technology (fintech) companies like Future Finance whose insights will be invaluable as we look to expand into new products and geographies.”
Nigel Morris, managing partner of QED Investors, added: “We are very impressed with Norton and his team and see enormous potential for the business in what is still a nascent market for student finance in the UK.”