MBA students enrolling at Insead this year may not have to worry so much about financing their degrees as many of their peers. Prodigy Finance, which was set up by three Insead alumni in 2006, has issued a community bond targeted at Insead alumni and business partners.
Because all the money for the €50m bond will come from the Insead community and no banks are involved, Insead will be able to provide finance to students on the basis of future rather than historic earnings. According to Prodigy, this new asset class gives an attractive rate of return over five years. At the same time Insead alumni are able to strengthen the community by helping to finance the next generation of students.
