Restructuring bank partnerships and building a valuation business for PE buyers

A Carlyle-backed student lending platform needed better unit economics from its bank partnerships, and saw an opening as banks sold student loan portfolios to private equity.

$10B+student loan securitizations enabled
No upfront capitalrequired on new originations after restructuring
MBOunderpinned by the analytics

Situation

Monogram ran student lending programs in partnership with banks. The original structure required upfront capital on new originations, which tied up cash and constrained growth. Meanwhile, banks had begun exiting student loan portfolios, and the private equity firms buying them needed someone who could value and analyze the loans.

Approach

  • Restructured the bank partnership terms to eliminate upfront capital requirements on new originations, changing the platform's unit economics and cash-flow profile.
  • Created a new revenue line by positioning the company as a valuation and analytics provider to PE firms acquiring student loan portfolios from banks.
  • The analytics enabled more than $10B of student loan securitizations alongside PE partners.

Result

Better unit economics on originations, a new revenue stream, and an analytical foundation that supported a successful management buyout.

Relevance for clients

Bank partnership and flow economics are negotiated, not fixed. Portfolio sales between banks and private capital need a credible independent view of value, often built on a data tape the buyer has never seen.

This case study describes work done by our founder, Gaurav Agarwal, as an employee of the organization named. Figures are as publicly reported.