Edly CEO Chris Ricciardi and President Chuck Trafton discuss investing in income share agreement pools (ISAs) with the Edly Outcomes managed account.

1. Edly, Inc.
The Income Share Agreement (ISA) Marketplace
Invest in Student Success

2. Christopher Ricciardi, CFA
Co-Founder, CEO of Edly, Inc.
Head of Edly Capital Markets
Edly has funded thousands of student ISAs from dozens of universities
Edly, Inc. Management
Former Head of Structured Credit at Merrill Lynch & Credit
Suisse. 30 years in structured credit as partner at Mead Park
Management, and CEO of Cohen & Company.
Charles Trafton
Co-Founder, President of Edly, Inc.
Heads Edly origination
25 years in education finance including BNY Mellon and
FlowPoint Capital.
Outcomes I webinar 9/25/20

3. Current Offering
• Inflation protection (tied to salaries)
• Simple reporting-no-K-1s
• Potential tax advantages
• Subscriptions closing 10/15/20
For more info: see the EdlyOutcomes I PPM Supplement
or visit https://www.edly.co/product/outcomes-strategy/
• Attractive social impact investment
• 14% target returns. 8% for principal
protected.
• 18.65% IRR to-date
• Monthly income
Outcomes I webinar 9/25/20

4. Edly Marketplace
Edly is a marketplace connecting
students & schools with investors.
Students &
Schools InvestorsEdly
Students & Schools want
alternatives to private
student loans
Investors want an
attractive social impact
investment
Edly underwrites,
manages, and funds
ISAs
Edly earns admission fees and management fees.
Outcomes I webinar 9/25/20

5. Edly’s better model
Edly provides a smarter alternative to
student loans.
Student debt is out of control. The model is broken
because of the ways lenders underwrite student loans.
Edly has a better model.
Instead of student loans, Edly offers to fund tuition
through Income Share Agreements (“ISAs”).
Outcomes I webinar 9/25/20

6. Income Share Agreements (ISAs) are
an alternative to private student
loans and a solution to the student
debt problem.
Instead of taking a loan, students agree to
pay a percentage of their salary up to a
capped amount.
What is an ISA?
Sample Terms
Outcomes I webinar 9/25/20

7. Better for the student
➔ Flexible
Automatic Deferment, No Accrued Interest
➔ Affordable
Always A Low Percentage of Income
➔ Accessible
Underwriting Based On Future Earnings Potential,
Not Credit Scores
➔ Helps Value Education
Signal to Students That The Tuition Investment
Makes Sense
Outcomes I webinar 9/25/20

8. approach
Edly’s underwriting
Instead of using credit scores, Edly
uses its proprietary “EdScore” — a
measure of the likely success of a
student.
EdScore ranks all U.S. schools on
graduation rate, job placement rate,
average salaries, wage inflation, student
loan default rate and other factors to
derive ROE-Return on Education.
Outcomes I webinar 9/25/20

9. Sample Portfolio Composition Some of Our Students
For more info: see the EdlyOutcomes I PPM Supplement
or visit https://www.edly.co/product/outcomes-strategy/
Outcomes I webinar 9/25/20

10. Outcomes I Portfolio
Outcomes I webinar 9/25/20
Abilene Cchristian University Centre College Georgia Institute of Technology National Technical Institue of Ukraine
Adams State University City University of New York Georgia State University National University
Addis Ababa University City University of New York-Brooklyn College Grace college & seminary New Mexico Insitute of Mining and Technology
Al-Nahrain University Claflin University Grinnell college New Mexico State University
Alverno College Cleveland State University Hope college New York University
American InterContinental University Colorado College Illinois State University Northeastern University
Angelo state University Colorado State University Indiana University Northern Arizona University
Aquinas college- Grand Rapids Colorado state University - Global Indiana University Bloomington Northwestern U
Arizona State University Colorado State University-Pueblo Institut Teknologi Bandung NYU
Art Institute of Fort Lauderdale Colorado technical University International Academy of Design and Technology NYU Steinhardt
Art Institute of Pittsburgh Columbia Southern University James Madison University Oakland University
Ashworth College Depaul University John C Smith University Oberlin College
Azerbaijan State Oil Academy Dixie State University Kansas State Ohio University
Azusa Pacific University East China University of Science and Technology Kazakh Ablai Khan University Old Dominion University
Babson College East Ukranian Volodymyr Dahl National University Keene state University Penn State University
Ball State University Emporer alexander I st. petersberg state transport University Lake Superior State University Pepperdine University
Barry University Fairfield University Lee University Polytechnic University, Brooklyn NY
Baruch college Far Eastern University Lees-McRae College Pontificia Universidad Javeriana
Belhaven University Florida Atlantic University Liberty University Portland State University
Bentley University florida international University Louisiana State University Providence College
Boston College Florida state college at jacksonville LSU Punjab Technical University
Boston University Florida State University Luther College Quinlan School of Business, Loyola University Chicago
Brigham Young University Fordham Gabelli School of Business Macaulay Honors College at Baruch Rhode Island School of Design
Brown University Fordham University Mapua Insititute of Technology Rocky Mountain College of Art and Design
BYU FSU McNally Smith College of Music Rutgers U
California Polytechnic State University-San Luis Obispo Full Sail University Messiah College Rutgers, New Brunswick
California state University, LA Future Academy Metropolitan State University San Diego State University
California State University, Long Beach George Mason University Metropolitan state University of denver San francisco State University
California State University-Sacramento George Washington University Michigan State University Santa Clara University
Calvin University Georgetown college Milligan College Savannah college of art and design
Capitol University Georgia College & State University Modern University for the Humanities Savannah state University
Central Michigan University Georgia College and state University Mount Vernon Nazarene University Shanghai business school

11. Outcomes I Portfolio (cont’d)
Outcomes I webinar 9/25/20
Siena Heights University The University of the South University of Illinois at Chicago Watts school of nursing
Silicon valley University Thomas Moore University University of Massachusetts, Amherst West Chester University of Pennsylvania
South Dakota state University Troy University University of Michigan West Virginia University
Southern Illinois University Edwardsville U Illinois at urbana-champaign University of Minnesota Duluth Western Connecticut State University
Southern Illinois University, Carbondale U Washington University of Montana-missoula Western Governors University
Southern Nazarene University U Washington Bothell University of North alabama Williams college
Srinakharinwirot University U Wisconsin- La Crosse University of North Dakota WVU
St Johns College (NM) UC Davis University of North florida Yale University
St. John's College UC Irvine University of Notre dame York College of the city University of new york
St. John's University UC Santa Barbara University of Oregon
Stanford University UC, San Diego University of phoenix
State University of New York at Delhi UCLA University of Pikeville
State University of New York College at Old Westbury Umass, amherst University of San Diego
Stockton University UNC Chapel hill University of south florida
Suffolk University UNC Charlotte University of South Florida College of Arts and Sciences
SUNY Albany Union University University of Southern California
SUNY Binghamton Univeristy of akron University of Tennessee, Knoxville
SUNY Oneonta Univeristy of Central Florida University of Texas at Austin
Syracuse University Univeristy of iowa University of Texas el paso
Temple universuty Universidad del turabo University of Texas Rio Grande Valley
Texas A&MUniversity Universidad politecnica de victoria University of Toledo
Texas A&MUniversity Galveston Campus Université des Sciences et de la Technologie University of Utah
Texas state University University of Agder (uia) University of Wisconsin-Eau Claire
Texas Tech University University of Alabama University of Wisconsin-Madison
The Art Institute of Seattle University of Arizona University of Wisconsin-Oshkosh
The College of New Jersey University of California - San Diego University of shanghai for science technology
The Evergreen State College University of California, Berkeley UT Austin
The University of Georgia University of California, Riverside UT Dallas
The University of Hong Kong University of Central Florida Utah State University
The University of New Mexico University of Florida Utah Valley University
The University of Texas at Arlington University of Georgia UVA
The University of Texas at Austin University of Houston Virginia Tech

12. Investor demand
➔ Funded 2,000+ students
➔ Traded $16 million in ISA pools
➔ 1,388 investors currently registered
Total Trades
Total Trade
Volume
Outcomes I webinar 9/25/20

13. ISA Impact Investing
As merit-based investments, ISAs can play a vital role in alleviating the
student debt problem and increase education access and affordability for
current and future generations
• Higher education and vocational skills are correlated with higher
income, wealth, health, and happiness.
• But training is expensive, and student loans are a significant barrier
to education access and affordability. Private student loans are
discriminatory, regressive, punitive and expensive.
• ISAs are affordable by definition and expand education access, reach
and affordability for millions of students and their families
Outcomes I webinar 9/25/20

14. Edly’s no-FICO, no-signer ISAs
can increase accessibility and
affordability
ISAs Can Increase Retention and
On-Time Graduation
Source: Pell Institute
Bachelors Degree Attainment vs. Household Income
Outcomes I webinar 9/25/20

15. Social Impact of ISAs
Source: WSJ (citing Census Data from 2015) Source: WSJ (citing Federal Reserve) Source: WSJ (citing Consumer Financial Protection Bureau)
Edly ISAs have materials positive social impact by providing
education financing access based on student potential – NOT
family wealth.
Outcomes I webinar 9/25/20

16. Ask schools to have “skin in the game” to ensure alignment of
interests with student careers and actual earnings.
edly agrees to:
Work to offer an alternative to private student loans which is
both more affordable and more flexible.
Seek tuition funding for all students regardless of the field
of study.
Never use FICO or similar credit scores because they are
biased against certain groups of students and generally not
appropriate for young people.
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Market Standard: ISA Principles
Outcomes I webinar 9/25/20

17. Ensure that there is a reasonable minimum income threshold
below which students would not need to make ISA payments
because it would be an economic hardship.
Ensure that there is a reasonable cap on the total amount of
payments a student would make (related to the cost of
tuition) so that they never pay too much regardless of
success.
Give students time to find the right job after graduation.
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6
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Market Standard: ISA Principles
edly agrees to:
Outcomes I webinar 9/25/20

18. Learn more at
edly.co
Email us at:
chris@edly.info
chuck@edly.info
Invest in Student Success
Outcomes I webinar 9/25/20