Baar-Zug, Switzerland, March 1, 2021
PG Impact Investments invests in Laudex, aiming to improve access to higher education for students in Mexico
PG Impact Investments has committed USD 5 million to Corporativo Laudex S.A.P.I. de C.V., S.O.F.O.M. E.N.R. (“Laudex” or “the Company”). Laudex, an impact fintech company based in Mexico, provides education loans to students with low- and middle-income backgrounds who are often unable to attend public universities due to limited offer, while unable to afford private universities. Education loans allow them to attend higher education programs (including undergraduate, graduate, or technical degrees) in a country where, according to the OECD, only 22% of the 25 to 64-year-old have a higher education degree. In this context, the Company’s reasonably priced loans can have a long-term impact, since access to quality education promotes the creation of more and better job opportunities for young Mexicans. In addition, Laudex helps borrowers develop a credit history, while promoting financial education and responsibility.
Founded in 2009, Laudex’s model relies on building long-term strategic alliances with high quality universities and other educational institutions. Thanks to its network of over 60 partnerships, Laudex can ensure the use of its funds for education by making disbursements directly to these institutions. This also allows significant business synergies, such as the presence of Laudex personnel on campus to communicate about the Company’s products. Laudex has a strong position in the market with 154 employees who operate from the headquarters based in Mexico City, as well as across all 31 states. Since its foundation, the Company has helped over 17,000 students to enroll in education programs, with over USD 100 million in student loans disbursed. So far, over 12,000 students have successfully graduated.
Urs Baumann, CEO and co-founder of PG Impact Investments, comments: “We are extremely pleased to support access to education in Mexico. We believe the impact of Laudex is significant as most college-age Mexicans are unable to access free public higher education due to insufficient supply of public sector resources. Our investment will support the Company to expand its cumulative reach to over 26,000 students by 2024 as well as foster increased access to education and improved employment outcomes across Mexico.”
Francisco Cordero, CEO of Laudex, comments: “We are delighted to welcome PG Impact Investments as a key funding partner in the middle of this volatile environment, which has not kept us from continuing our social mission and growing profitability. We hope this is the beginning of a long-term relationship with PG Impact Investments, and that together we can keep changing lives, by propelling education.”
About PG Impact Investments
PG Impact Investments was founded in 2015 with the vision that private investment, innovation and entrepreneurial talent can provide solutions to the challenges faced by our society, as well as create sustainable growth. PG Impact Investments is a private sector, mission-driven, global investment firm specializing in investment solutions aimed at delivering financial returns as well as creating a positive social and/or environmental impact. It manages investment strategies for an international clientele of professional investors who are seeking investment solutions that offer market-rate returns, while also helping to address pressing social or environmental challenges. Whilst being independent from Partners Group, PG Impact Investments entities are backed by Partners Group and its employees, and benefit from the global infrastructure, investment know-how and specialist resources of this leading global private markets investment manager. www.pg-impact.com
Founded in 2009, Laudex is the leading fintech in the education space in Mexico with a track record of over 17,000 financings for an accumulated credit amount of over USD 100 million across the country. Laudex has developed commercial alliances with over 60 education institutions to finance undergraduate and graduate degrees both in Mexico and abroad, with seamless digital processes to ensure an outstanding customer experience and efficient operations. The Company has managed to create an entrepreneurial and innovative organizational culture, and a solid Corporate Governance for institutional decision making and value-adding to all stakeholders. Laudex currently holds a diversified credit portfolio of over USD 31 million, an NPL ratio of 2.3%, and a long-term credit rating of A-.
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