Financial services firm Fifth Third Bancorp led a $50m series D round for CommonBond, a US-based student loan consolidator backed by student loans provider Nelnet, on Wednesday.
Fifth Third Bancorp participated through its Fifth Third Capital Holdings unit, investing alongside financial services provider First Republic Bank, Columbia Seligman Investments, Neuberger Berman, August Capital and Nyca Partners.
CommonBond provides a range of student loans services including the provision of new loans, loan refinancing and student loan-related benefits for corporate employees. It has so far financed more than $1.5bn in loans.
Proceeds from the round, which boosted the company’s overall equity funding to more than $130m, will support business growth and further investment in its technology.
Tim Spence, Fifth Third’s head of payments, strategy and digital solutions, said: “At Fifth Third, we recognise that student debt is the number one challenge our millennial customers face.
“CommonBond has built an industry-leading digital proposition that delivers a memorable experience and helps its members save thousands on their student loans so they can finance their dreams. We are pleased to support CommonBond’s continued growth and look forward to working with them to bring powerful capabilities to market.”
The company had raised funding from Tribeca Venture Partners, Social Capital and assorted angel investors before Nelnet invested an undisclosed amount in early 2015.
August Capital led a $35m series B round later the same year that included Nyca Partners, Tribeca Venture Partners, Social Capital and private investor Tom Glocer.
CommonBond added $30m in a 2016 series C round led by Neuberger Berman Private Equity that included August Capital, Tribeca Venture Partners, Social Capital, Nyca Partners and Victory Park Capital, alongside $300m in debt financing.