GradBridge, a newly launched fintech focused exclusively on second-look private student lending, today announced the closing of a $20 million Series A funding round led by Acorn Investment Partners, a portfolio company of funds managed by Oaktree Capital Management. The equity investment will support GradBridge’s upcoming launch of a private student loan product exclusively designed for students who have exhausted federal and private options and are still committed to completing their education.
“Acorn’s principals have a long history of partnering with strong entrepreneurial businesses, and through this investment support expanded access to higher education for deserving students, while delivering attractive risk-adjusted returns,” Yadin Rozov, chief investment officer of Acorn Investment Partners, said. “GradBridge’s approach addresses a real market gap for students who are performing academically but fall just outside of traditional credit underwriting models. We are proud to lead this round and support their launch.”
Jen O’Donald, CEO of GradBridge, said, “College completion is one of the most powerful drivers of lifetime earnings and financial independence, yet every year, more than a million students are denied private loans — many by just a narrow margin. Changes to the federal student loan program will only exacerbate this reality. We see an unserved, addressable market for our innovative product: academically strong students who fall outside traditional student loan underwriting criteria and risk not completing their degree. With the backing of Acorn Investment Partners, we now have the resources needed to give these underserved students a second look — and a second chance to bridge the gap between ambition and opportunity.”
