Investing · Defynance
Defynance Fund
Co-Founder & CEO, HalalWallet
Facts are re-verified against Defynance's published materials; this page updates when the provider's terms, rates, or coverage change.
A closed-end private fund that invests only in the income share agreements Defynance issues when it refinances student loans. Investors' capital pays off borrowers' student debt, and the borrowers' income share payments, net of fees, flow back to investors. It is open to accredited investors (minimum $25,000) and qualified purchasers (minimum $100,000), with monthly subscriptions.
Distributions are reinvested during a one-year hold and paid quarterly after that. Defynance describes the returns as interest-free because they come from a share of income rather than from lending. Fee amounts are in the private placement memorandum, not on the website, and no scholar's review of the fund is published.
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What is the Defynance Fund?
A closed-end private fund that invests only in the income share agreements Defynance issues when it refinances student loans. Investors' capital pays off borrowers' student debt, and the borrowers' income share payments, net of fees, flow back to investors.
- Contract structure: Closed-end private fund holding income share agreements (accredited investors only).
- Available in all 50 states.
- Shariah oversight disclosed: No Public Review.
- Verified against Defynance's published materials on 2026-11-13.
Source: HalalWallet (halalwallet.us)
Key facts
- Structure
- Closed-end private fund holding income share agreements (accredited investors only)
- Program type
- Private Fund
- Management fee
- Sales charge on each subscription, recurring servicing fees, a management fee on assets under management, and carried interest on profit. Amounts are in the private placement memorandum, not published.
- Minimum investment
- $25,000 for accredited investors; $100,000 for qualified purchasers (the manager can make exceptions)
- Availability
- all 50 states
- Shariah oversight
- No Public Review
- Shariah board
- No Public Review
- Provider founded
- 2019
- Last verified
- 2026-11-13
Facts are taken from Defynance's published product materials and were last verified on 2026-11-13. Fields the provider does not publish are omitted rather than estimated.
Our take
The Defynance Fund lets accredited investors fund the other side of the company's refinancing product: capital pays off student loans and returns come from a share of borrowers' income rather than interest. The performance figures on the fund page are strong but are the manager's own, with no period stated, and the fund is small (a $5 million raise goal), illiquid, and run by a company that names its startup status as a risk.
There is no Shariah review, screening policy or purification guidance. For investors who can meet the minimum and accept private-fund risk, it is an unusual interest-free income asset that still needs independent religious and financial diligence.
Strengths
- Returns come from a share of borrowers' income, not from interest
- Investor capital pays off interest-bearing student debt
- Quarterly distributions after the first year
- Defynance reports low volatility and returns it describes as uncorrelated with markets
Watch-outs
- No Shariah board, scholar, fatwa or purification guidance is published
- Accredited investors and qualified purchasers only, with a $25,000 minimum
- Fee amounts are disclosed only in the private placement memorandum
- Illiquid: one-year hold, and redemption options are not yet available
- Defynance lists its own startup status and the possibility of agreements defaulting among the risks
Is the Defynance Fund halal?
The fund's income does not come from interest. It holds income share agreements, where each customer pays a fixed percentage of income for a set term, so investors earn more only when customers earn more and bear the downside when payments pause. Defynance markets this as interest-free returns. It publishes no Shariah board, scholar, fatwa, screening policy or purification guidance for the fund; its one halal statement, a 2020 blog post about the refinancing program, cites an unnamed expert opinion.
If the underlying agreements are judged to be loans with a variable return, as the published scholarly analyses of the model conclude, the fund's income would be affected by the same problem. The fee stack (a sales charge, servicing fees, a management fee and carried interest) is disclosed only in the offering documents. Anyone who needs a ruling should have a scholar review the private placement memorandum and the underlying agreement.
Shariah oversight disclosed by Defynance
Defynance says an unnamed expert opinion found its program halal (2020 blog post); no scholar, board or fatwa is published. Published scholarly analyses of the income share model conclude it is not Shariah-compliant.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- Closed-end fund that invests exclusively in Defynance income share agreements
- Open to accredited investors and qualified purchasers; subscriptions accepted monthly
- Minimum $25,000 (accredited investors) or $100,000 (qualified purchasers)
- One-year hold with distributions reinvested, then quarterly distributions paid out or reinvested
- Defynance reports a 14.66% net return, 0.47% volatility and a 2.22 Sharpe ratio on its fund page (period not stated; read 2026-11-13)
- Stated fund raise goal of $5 million; limited redemption options are planned but not yet offered
Cost and terms
Management fee: Sales charge on each subscription, recurring servicing fees, a management fee on assets under management, and carried interest on profit. Amounts are in the private placement memorandum, not published..
How it compares
Other investing providers we list in the U.S., ordered by each provider's HalalWallet Index grade. The grade covers the provider's investing products as a group, not an individual product.
| Product | Structure | Shariah oversight | Availability | Provider grade |
|---|---|---|---|---|
| Defynance Fund (this page) | Closed-end private fund holding income share agreements (accredited investors only) | No Public Review | all 50 states | Not graded yet |
| Musaffa Halal ETF Finder | ETF Screener | Formal Board | all 50 states | |
| SPFunds SP Funds S&P World ETF | Index-based | Third-Party Certified | all 50 states | |
| Wahed Real Estate Fund | Zero-debt single-family rental fund (100% equity) | Third-Party Certified | all 50 states | |
| Manzil Trading (Self-Directed Halal Stock Trading) | Self-directed brokerage with real-time AAOIFI screening (Zoya) | Formal Board | all 50 states |
Other Defynance products
- Student Loan Refinancing (Income Share Agreement)
Education Financing · Income Share Agreement (ISA)
Where it's available
Defynance lists the Defynance Fund as available in all 50 states.
Availability may vary by product and can change; verify with Defynance before applying.
Frequently asked questions
Is the Defynance Fund halal?
The fund's income does not come from interest. It holds income share agreements, where each customer pays a fixed percentage of income for a set term, so investors earn more only when customers earn more and bear the downside when payments pause. Contract structure: Closed-end private fund holding income share agreements (accredited investors only). Shariah oversight disclosed by Defynance: No Public Review. HalalWallet reports what the provider documents; we do not certify products.
How does the Defynance Fund work?
A closed-end private fund that invests only in the income share agreements Defynance issues when it refinances student loans. Investors' capital pays off borrowers' student debt, and the borrowers' income share payments, net of fees, flow back to investors. It is open to accredited investors (minimum $25,000) and qualified purchasers (minimum $100,000), with monthly subscriptions.
What does the Defynance Fund cost?
Management fee: Sales charge on each subscription, recurring servicing fees, a management fee on assets under management, and carried interest on profit. Amounts are in the private placement memorandum, not published..
What are the minimums for the Defynance Fund?
As published by Defynance: minimum investment $25,000 for accredited investors; $100,000 for qualified purchasers (the manager can make exceptions). Confirm current requirements with Defynance before applying.
Where is the Defynance Fund available?
Defynance lists this product as available in all 50 states. Availability can change and may differ by state; verify directly with Defynance.
What are the alternatives to the Defynance Fund?
In the same category we also list Musaffa Halal ETF Finder (HalalWallet Index B+), SPFunds SP Funds S&P World ETF (HalalWallet Index A-), Wahed Real Estate Fund (HalalWallet Index A-). Compare every option side by side on our Halal Investing hub.
When was this Defynance product information last verified?
HalalWallet last verified the Defynance Fund details against Defynance's published materials on 2026-11-13. Rates, fees, and availability can change after that date.
See something outdated or wrong?
This data was last verified . Report a correction and we will re-check the primary source, fix the record, and log the change on our public corrections page.
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-11-13
How to cite this page
Preferred format (HTML):
https://www.halalwallet.us/providers/defynance/defynance-fund, retrieved 2026-11-14).For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.