Wilmington-based College Ave Student Loans, a fintech private student loan lender announced an agreement under which Thrivent is the new majority shareholder.
The investment emphasizes College Ave as a major player in private student loan lending, according to a release. It also allows College Ave to explore faster growth and new expansion opportunities while maintaining its promise to deliver best-in-class products for students and families, a release stated.
In fewer than 10 years, the fintech start-up has become the third largest player when it comes to in-school lending, and now originates and services more than $1 billion in student loans annually.
“This is an ideal opportunity for College Ave because we will benefit from a strategic partnership with Thrivent and gain access to capital to continue to invest in and grow our business,” said Joe DePaulo, co-founder and CEO of College Ave Student Loans. “We’re committed to helping students and their families make informed decisions about funding their education through responsible, competitive loans. This partnership helps us further our mission.”
“At Thrivent, we’re always looking for ways to leverage our financial strength and deliver value for our membership,” said Stephen Friend, vice president of M&A and Corporate Development at Thrivent. “This formalized relationship with College Ave Student Loans is an excellent way for us to invest in an important asset class and partner with an organization that has a strong management team, an attractive growth trajectory and a mission that aligns with our purpose to help people make the most of all they’ve been given.”
In connection to the transaction that was completed on July 21, 2022, no management, strategy or brand changes are anticipated. College Ave has about 75 employees.
Thrivent, a nonprofit fraternal society and a Fortune 500 company, is the product of a merger or two Lutheran financial organizations based in Minnnesota and Wisconsin.
The denomination formed fraternal societies as a way to provide insurance and financial services to members. In the past, Lutherans had been forbidden from joining other fraternal societies. Founder Martin Luther also preached against the use of insurance.
Membership was later opened up to non-Lutherans.
Thrivent has financial relationships at Lutheran colleges around the county, adding a possible marketing channel for College Ave