Charter School Lender ESRF Shares 2026 Plans

The Equitable School Revolving Fund (ESRF), an innovative nonprofit lender to U.S. public charter schools with a zero-default record on nearly $2 billion in loans, speaks with The Bond Buyer on two bond sales it has planned for 2026.

• ESRF is planning a sale of up to $350 million through the Arizona Industrial Development Authority in February, and a $250 million multi-issuer transaction in August.
• ESRF CEO and founder Anand Kesavan says the fund's "bespoke" investment model, which focuses on high-quality underwriting and active portfolio management - including a year-long diligence process for each school - has allowed it to avoid defaults, while other market segments have faced pressure and challenges.
• The fund's innovative pooled structure provides high-performing partner schools with below-market loan rates by pooling high-quality borrowers and conducting thorough due diligence, enabling it to help its partner schools collectively save over $300 million in interest costs.
• Orrick partner Eugene Clark-Herrera, who with his team has served as ESRF's bond counsel since the fund's inception, calls the pool structure "the whole thesis for the fund," explaining: "As the quality of the pool rises, the pool can borrow at lower rates and be able to pass through savings."
• Orrick serves as bond counsel to the fund.

ABOUT THE FUND

Equitable School Revolving Fund is a nonprofit social impact fund created to provide long-term, low-cost facility loans that allow high-performing charter schools to maximize the resources they dedicate to students.

ESRF is an "A" rated pooled fund that offers high-credit, long-term, scalable bond investment opportunities.

LEARN MORE

• Read the full article
• Orrick's Charter School Finance Team