If you have quotas from a fixed income fund, the chances of being indirectly investing in a Pravaler Fidc (Credit Rights Investment Fund) are not low. This is because 40% of all the assets applied in these funds belong to managers who invest in at least one fund of receivables from the Higher Education Financing Platform, according to the company’s survey, with data from Anbima May this year. Now the company has announced the biggest uptake in its history.
Pravaler raised R $ 588 million in three FIDCs to expand funding capacity in undergraduate courses from private colleges. According to the company, the funds are enough to finance 50,000 students in the coming months. Last year, the platform funded 110,000 students. In 2025, the goal is to reach 130,000 people.
Darling of the back, the pravaler is not new to the fidc market: since 2002, there have been 88 series with a total capture of $ 4.5 billion. Rafael Piva, director of corporate finance and governance of the company, says that 5 of the 24 managers who entered the company’s latest emissions first bought participation in a company’s receivables fund. “Investors trust solid players; we have plenty of history and credit model that has undergone high interest rates, recession and low interest rates,” says Piva.
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Company offers have been rated “AAA” by S&P and Fitch since 2017. Record capture has been demanded five times higher than bookbuildingindicating appetite of more than $ 1.7 billion for the papers. Pravaler did not open the profitability of the last emissions, but informs that the previous offer from September last year came the CDI + 1.4% per year in the senior quota.
IMPACT AND DEFAULT
Pravaler claims to have more than 80% participation in the private student financing market. The model is simple: with credit, the student doubles the number of installments needed to pay off the course in exchange for interest with a ceiling of 1% per month. “We allow the person to take the course they want, in the college they want,” says Piva, explaining that many evasion cases are given to choose a cheaper course that was not the first choice of the student.
In 2024, one million potential students registered their CPFs on the platform to simulate student funding, which shows the popularization of the sport, according to Piva. In a FIDC, investors’ main concern is with default. Dealing with thousands of students, Pravaler says he has numbers “in line with large banks”.
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The company does not reveal the rate of default on its contracts, but the maximum credit rating and the appetite of managers for its FIDCs prove that the number is good, argues the company’s director.
With the analysis of students and guarantors and granting of credit only within the partner institutions, the model has “default controlled already at the start”. In the absence of payment, the collection models are “quite traditional”, but Rafael Piva points out that the model is “less about collection and more about analysis and what we will offer to students”.
A study conducted by Pravaler with about 23,000 students between 2017 and 2023 shows that the real average income of the platform students grew approximately 70% over seven years. After graduation, income increases, an average of 47%. Data are one of the arguments in favor of low default achieved on the platform.
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The study area also impacts the students’ ability to pay. Piva says default is historically lower in health courses such as medicine, dentistry, psychology and veterinary medicine. Between the first half of 2023 and the first half of this year, the volume of financing for medical students grew 60%. “Because it is a higher value course, credit is even more important,” explains the executive.
Sectoral recovery
The focus of the Pravaler is in face-to-face teaching, strongly affected by the measures to contain the Covid-19 pandemic. Between 2013 and 2023, presential courses enrollment fell 29.1%, according to Semesp, an entity that represents the maintenance of higher education in Brazil. Record and appetite for institutional investors can be interpreted as better signs for the education sector.
“The face -to -face is growing back in Brazil,” says Piva, who still sees a “modest” recovery pace. For him, private student financing still has little penetration in the country: “We have a lot of room to grow.”
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For the 600 partner institutions, student financing allows immediate liquidity, guarantee of payment and predictability of revenues, argues the director of corporate finance and governance.
While teaching and credit grow, the pravaler projects its revenues increase. In 2024, revenues were R $ 480 million. The forecast for this year is $ 600 million, with renewal and entry of students.
