#United States #Wilmington #GradBridge #Acorn Investment Partners #Oaktree Capital Management

GradBridge Secures $20 Million Series A Funding

In a notable advancement in the realm of educational financing, GradBridge, a fintech company that specializes in second-look private student lending, announced the successful closure of a $20 million Series A funding round. This round was led by Acorn Investment Partners, a key player under the umbrella of Oaktree Capital Management L.P. This pivotal investment aims to bolster the launch of GradBridge's innovative lending product, tailored specifically for students who have exhausted federal and private financing options while remaining committed to their educational pursuits, with plans for implementation beginning in Spring 2026.

GradBridge was founded by Jen O'Donald, a former leader at Sallie Mae, who brought together an experienced team of professionals in the financial services sector. The team includes CFO Brian Carp and COO Lisa Kaplan, among others, who collectively possess decades of expertise in consumer credit and student lending. Under their leadership, GradBridge aims to fill a significant gap in the current lending landscape, particularly for academically capable students who often fall outside conventional credit underwriting criteria.

Yadin Rozov, the Chief Investment Officer of Acorn Investment Partners, expressed confidence in GradBridge’s mission, stating, "Acorn's principals have a long history of partnering with strong entrepreneurial businesses, and through this investment, we support expanded access to higher education for deserving students while delivering attractive risk-adjusted returns." This collaborative effort seeks to address a growing issue within education funding, where roughly a million students annually face loan denials, often by a narrow margin, underscoring the need for alternative financing routes.

With rising costs and changing regulations affecting federal student aid, GradBridge is stepping into a critical area of need. CEO Jen O'Donald emphasized the importance of college completion, a driving force behind lifetime earnings and financial independence. She noted, "More than half of undergraduates at four-year institutions drop out each year, and financial difficulties are the main reason." With the current average college dropout earning 30% less than their graduate counterparts, the stakes are high, and GradBridge is determined to turn loans that are commonly denied into success stories of graduation.

To ensure regulatory compliance and operational excellence from day one, GradBridge has engaged partnerships with several established leaders in the industry, including CampusDoor, Nelnet, Gestalt, and Maquette Advisors. These collaborations will provide essential origination technology as well as service and analytics needed for responsible scaling of their lending operations.

The initiative reflects a broader vision for empowering students in their educational journeys, aiming to bridge the widening gap between ambition and opportunity. By addressing the funding needs of academically strong students who might otherwise be sidelined, GradBridge's innovative approach could redefine the future of educational financing.

GradBridge’s mission resonates with countless individuals navigating the costs of higher education, and with the support from Acorn Investment Partners, they are poised to transform the student loan landscape significantly. For more information about their services and initiatives, visit GradBridge.com.

About GradBridge

GradBridge stands at the forefront of transforming private student lending, designed to empower upperclassmen and graduate students who are academically inclined yet face hurdles with traditional financing models. With a mission to create pathways toward graduation and long-term financial independence, GradBridge is not just about funding—it's about changing lives. For further inquiries or to schedule a more in-depth conversation, please reach out to GradBridge's media contact at [email protected].