ISA Investment 101: Resource for ISA Investors
Since Purdue University established its income share agreement (ISA) program in 2016, ISAs are becoming more prominent in higher education. The opening up of this market creates a new asset class opportunity for investors. It also provides a space for impact motivated investors who also want a financial return to invest in education and diversify their portfolios.
However, there is very little by way of information for accredited and institutional investors looking to invest in this space. This series of articles is designed to provide information to interested investors.
This space is still young, though maturing quickly, as competition in higher education from coding schools and boot camps spurs investments. More accredited institutions are establishing ISA programs as student debt concerns are taking a toll on recruitment, retention, and graduation rates.
Every ISA deal and program structure can have its own unique elements, but there are many common elements. By understanding the elements, you can better understand how ISA deals are done, and the many ways in which ISA investors can create impact in the community and obtain financial value.
The ISA Investing 101 series is tailored for investors considering ISA investment, but are new to this space, or those who want to understand more about this space. A lot of our content is inspired by Christopher Mirabile and Hambleton Lord's angel investment series of blogs and books. We highly recommend their content for angel investors.
We will cover the following topics in this series:
- What is an income share agreement? How is it different from student loans?
- The basics of investing in ISAs: The When, How, and Why
- Active investment in ISAs: The MentorWorks approach
- What type of due diligence should you do before investing in ISAs?
- What are the key risks in ISA investing?
- How does active ISA investment compare to angel/VC investing?
- How do I find ISA deals to invest in?
- The Income Share Agreement (ISA) as an investment hedge – why is it safer?
Useful links: MentorWorks Investor Portal
About the Author
Karthik is the CEO and Co-founder of MentorWorks Education Capital as well as a tenured Associate Professor of finance at Northeastern University and a former angel investor with Launchpad Venture Group. His teaching and research in the areas of entrepreneurship and education finance has made him a go-to-resource and thought leader on education financing having published various articles on the subject. He has mentored many students and assisted them in securing meaningful internships and jobs. Reach out to Karthik at email@example.com.