Market environment
Nothing contributes as much to social advancement and dealing with central social challenges, such as the growing gap between rich and poor, as education. In recent years, the number of students at German universities has steadily increased, with almost 2.9 million enrolled in the winter semester 2019/2020 (statista). Business models, such as that of CHANCEN eG, have also contributed to this and should be able to continue enabling students to realise their potential in the future.
Issuer
CHANCEN eG finances tuition fees for students through an Income Share Agreement. After graduation, the alumi pay back a fixed percentage of their income, but only if they exceed a minimum income threshold. The Income Share Agreement enables students to choose their studies regardless of their financial background. The business model is a solution to the financial barriers to higher education and promotes equal opportunities and social mobility.
The business model is based on more than 20 years of experience. Since its development by students at the University of Witten/Herdecke in 1995, it has been successfully managed and administered by the Studierenden Gesellschaft Witten/Herdecke e.V., a close partner of CHANCEN eG. More than 2,500 students have already used the Income Share Agreement to finance their tuition fees. CHANCEN eG was founded in 2016 by two former managing members of the Studierenden Gesellschaft in order to expand the model and offer it at other higher education institutions.
Investment
CHANCEN eG wants to address the growing demand for education financing. In order to cover the growing need for capital to finance the tuition fees of more and more students, Chancen eG issues a bond. With the bond proceeds the studies of numerous new generation specialists and managers can be financed through the Income Share Agreement. SDG INVESTMENTS and its sister company AHP Capital Management GmbH were significantly involved in the structuring of the bond. The bond will be placed in two tranches in summer 2019 and spring 2020 by GLS Gemeinschaftsbank eG and Chancen eG itself.
All relevant information on the Chancen eG bond and the securities prospectus approved by BaFin are available on the Chancen eG website.
