Alt Lending Partnership: Access to US Private Student Loans

At Kingsbury & Partners, our mission has always been to deliver innovative financial solutions that provide exceptional value to our clients with transparency at the core of each opportunity. Today, we are delighted to announce our partnership with Alt Lending, a leader in private US student loan refinancing. This collaboration grants our clients and partners access to the U.S. private student loans market — a sector that has already attracted institutional heavyweights like KKR and Carlyle.

With the approval of our Product and Risk Committee, this partnership signifies another milestone in our journey to provide sought-after, risk-adjusted returns in exclusive asset classes.

Update (October 2026): The Product & Risk Committee has since been renamed the Credit Committee, with its scope now focused on credit. Kingsbury & Partners has also completed a second USD 15M senior secured facility for Alt Lending, bringing total CLN issuance to Alt Lending to USD 30 million.

About Alt Lending: expertise that drives value

Alt Lending is operated by a team of industry experts with extensive experience in the U.S. student loan market. Having securitised over $18 billion in student loans, their acute knowledge of regulations, underwriting policies, and operational execution ensures an unparalleled level of expertise, whilst mitigating risk for both clients and partners. You can hear from the team directly in our interview with CEO Mark Brenner.

For investors, this partnership is an opportunity to engage with a team whose track record demonstrates their ability to turn distressed portfolios into profitable investments with attractive risk-adjusted returns. Borrowers benefit from tailored refinancing solutions that offer lower interest rates and the chance to improve their credit standing, ensuring that financial relief is sustainable.

US private student loans as an asset class

The U.S. private student loan market is a $130 billion sector, with an estimated $30 billion in distressed loans. Investors stand to benefit from significant returns by capitalising on discounted acquisitions and the sale of reperforming loans. For a fuller introduction, see private student loans: an emerging asset class in private credit.

Key highlights from Alt Lending's strategy:

• Loans are acquired at 15-50% of their principal value, creating a substantial margin for profitability.
• Reperforming loans are resold at 70-90% of the principal value, achieving an attractive return for investors.
• Student loans are protected against consumer bankruptcy, providing a level of security not found in other asset classes.

Financial forecasts:

• A projected 1.6x debt-to-income ratio ensures stable cash flows for investors.
• Over 70% of distressed loans can achieve reperforming status, significantly increasing portfolio value.
• The partnership targets a 13% annual coupon, with bi-annual interest payments, providing reliable income for investors.

This asset class offers financial potential and also delivers social impact by helping borrowers regain financial stability.

How the structure manages risk

Our partnership is built on a foundation of rigorous risk management:

• Comprehensive due diligence: Borrowers are assessed through escrow payments and guarantor agreements.
• Structured investments: The Credit Linked Note is governed under Luxembourg and U.S. law, with FCA and FINMA-regulated sponsors.
• Defined exit strategies: Reperforming loans are refinanced or sold, maximising returns while minimising risk exposure.

John Hubball, Chairman of the Product & Risk Committee, writes:

“I'm delighted to get this one over the line. Alt Lending's vision and business model fits perfectly into our risk appetite, with a strong management team and private equity funding guiding them through their start up phase. They are now entering their growth phase complemented by issuing their first debt instrument. The team have been an open book during the due diligence & structuring processes Kingsbury have performed, and I'd thank them for their transparency. The company balances high yields, with target overcollateralisation of around 2.2x, and importantly the structure ensures healthy cash flows prioritising debt investor repayment. I'm looking forward to working closely with the Alt Lending team in the months and years to come.”

What the partnership means for investors

How will this partnership benefit Kingsbury & Partners' clients?

Through this partnership, clients gain access to a Credit Linked Note (CLN) tied to private U.S. student loans. Key features include:

• Attractive risk-adjusted returns: Loans are acquired at 15-50 cents on the dollar, with reperforming loans resold at 70-90 cents on the dollar.
• Portfolio diversification: Exposure to a niche, high-potential asset class within private credit.
• Collateral-backed security: All loans are secured within a bankruptcy-remote SPV (Special Purpose Vehicle).

How will private credit fuel Alt Lending's growth?

The capital provided by Kingsbury & Partners allows Alt Lending to acquire loan portfolios at steep discounts, leveraging private credit's flexibility for rapid portfolio expansion.

Key terms of the Alt Lending credit linked note

Structured by our in-house team in collaboration with Alt Lending, investors have the opportunity to invest alongside Kingsbury & Partners.

• Total raise: 15,000,000 USD
• Return: 13% annual return (6.5% biannually)
• Minimum investment: 50,000 USD
• Maturity: fixed maturity of March 2027
• Ranking: First charge, secured debt
• Security: First charge over the ongoing portfolio of US student loans. Minimum 2:1 asset-to-debt ratio
• Subscription: Delivery-vs-Payment, ISIN

To follow how the portfolio has performed since launch, read our Q3 2025 and Q4 2025 investor reports.