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PRIVATE EQUITY INVESTING
in Education-Focused Companies
July 18, 2019 @ 8:00 am - 5:00 pm
Where to Invest In the Education Industry
-- Childcare to Higher Education,
And Everywhere in Between
Private Equity Investing
In Education-Focused Companies
For private equity investors in education-focused companies, these are incredibly busy times —
- An increase in federal spending has ignited investment interest in childcare and preschool companies.
- Digital transformations — like increased digital delivery of content — in K-12 schools are helping the ed-tech market soar.
- Excess capacity has come out of the post-secondary landscape, leading to a resurgence of interest from private equity investors.
Benefiting from a rare period of agreement between the Republican administration and the Democratic Congress — childcare and preschools have seen an upsurge in funding by federal, state, and local governments.
In addition, the investment landscape is very fragmented with many providers still owned by individuals, but not yet dominated by large providers, leaving middle market PE firms lots of room for roll ups and add-ons.
Meanwhile the K-12 market is complicated, with new technologies rapidly changing the game. So putting the right people at the center of your education portfolio is paramount to keeping up.
Investors are spending more and more time developing world-class management teams to ensure their portfolio companies can provide teachers and students with instruction and support they need to succeed.
Some recent significant middle market deals include —
- The Learning Experience, recently purchased by Golden Gate Capital Partners Group-backed KinderCare Education, acquired Troy, Michigan-based Rainbow Child Care Center from Quad-C Management.
- Renovus Capital Partners bought Rasmussen College, a healthcare-focused college system with 10,000 students across 22 campuses.
- Toronto’s Altas Partners bought the University of St. Augustine from Laureate Education in a deal worth $400 million.
- Colibri Group, backed by Charlottesville’s Quad-C Management, acquired Allied Business Schools, which offers online real estate certification education.
- Dallas’s NCK Capital purchased Chicago-based Tricoci University of Beauty Culture.
For the past decade or so, private equity investors have hesitated to invest in post-secondary education companies — ever since the Great Recession, and ever since the restoration of the Gainful Employment Rule.
But times are changing!
- Over 100 institutions closed their doors before the 2017-18 academic year — continuing a long downward trend. But happily, at the surviving schools, enrollment and revenue are rising again.
- Family offices, impact funds, and sovereign wealth funds are interested in improving access, affordability, and quality in the sector, whether as LPs, partners, or deal-makers in their own right.
- The regulatory environment is more favorable, because the Gainful Employment Rule has been greatly scaled back – even though it remains on the books for now.
- Many post-secondary schools are demonstrating better results when it comes to measures like gainful employment, hence making them more appealing to investors no matter the level of regulatory oversight.
- Many PE investors believe that a recession is on the horizon. In general, post-secondary education does well when the economy slows down and people who are unemployed go back to schools.
- Valuations remain reasonable, compared with other education sub-sectors like edtech.
- It isn’t just investors who’re interested in this space – lenders have returned as well. For instance, Renovus financed the Rasmussen transaction with support from SunTrust, CIBC, and Bank of Ireland and NCK financed its acquisition of Tricoci in partnership with Greyrock Capital Group and NBH Bank.
And the opportunity in the post-secondary sector is much larger than just investments in for-profit colleges. Many traditional colleges are adopting aspects of for-profit models and looking for partners.
- TPG Rise Fund is partnering with Arizona State University to roll out a company that will work with employers who want to offer their workers online access to ASU’s programs.
- Both University of Massachusetts and State University of New York are planning national online colleges for adult learners, and considering partnerships with online program managers.
Bradley L. Whitman
Renovus Capital Partners
Thursday July 18, 2019
8:00 – 5:00
Register now to gain valuable insights as our 21 experts assess the outlook for the education industry and survey the prospects for each of its various subsectors when you attend The Capital Roundtable’s all-day conference on Private Equity Investing in Education-Focused Companies on Thursday, July 18, in New York City.
Three Key Reasons Why You Should Join Us
- Hear how higher education is being remade to better support employers’ and students’ needs.
- Understand which education sub-sectors are most appealing.
- Get insight into the long-term regulatory outlook.
- Family office and sovereign wealth fund interest in education investing
- Opportunities to work with non-profit colleges
- Tips for helping schools develop online offerings
- The latest trends in edtech
- The outlook for student debt
- How much leverage is available for higher-education deals now
- How to do your due diligence for both the bottom line and educational outcomes
- The Higher Education Act and state-level regulation
- For-profit colleges’ prospects after the 2020 elections
- Valuations of for-profit colleges vs. other education sub-sectors
- Other promising education sectors – like childcare companies
- Exit market trends
- How changing demographics impact education deal-making
- How a recession may impact the education sector differently than in the past
Bradley Whitman founded Renovus Capital Partners in 2010. He leads buyout, mezzanine, and growth capital investments in small and mid-sized education, training, and human capital companies. He also serves on the boards of 18 Renovus portfolio companies and is in charge of overall firm strategy.
Previously he was a managing director at Leeds Equity Partners, an education-focused private equity fund founded in 1993. At Leeds Equity, he led a number of investments in education companies from 2005 – 2009.
From 2000 to 2005 he was a vice president at Carlyle Group, one of the world’s largest private equity funds. He began his career as an analyst in Merrill Lynch’s M & A group from 1998 to 2000.
He earned an AB summa cum laude in economics from Harvard University.
Recent Transactions in the Education & Training Sector
- Education Principle Foundation, which has ties to Colbeck Capital, plans to buy some Art Institute campuses from Dream Center.
- Marblegate Asset Management-backed Ancora Education purchased certain assets of Delta Career Education.
- TPG Rise Fund is partnering with Arizona State University on a “learning-services company” to offer employers and research institutions access to its online courses.
- Summit Partners sold Trident University International to publicly traded Career Education Corp. for between $35 million and $44 million.
- Learners Edge, a portfolio company of L Squared Capital Partners, acquired the Teaching Channel, a subscription-based software platform where teachers can learn new techniques to improve student learning.
- Renovus Capital Partners acquired and merged Clinical Care Options and Practicing Clinicians Exchange, two continuing medical education companies.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about education companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from education company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Bradley L. Whitman, Founding Partner, Renovus Capital Partners
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
- Jennifer L. Blum, S.V.P.–External Relations & Public Policy, Laureate Education Inc.
- Frank F. Britt, Chief Executive Officer, Penn Foster Education Group Inc.
- Dave Goldberg, Chief Executive Officer, Cadence Education
- Todd Hand, Managing Partner, Knowledge Leaders
- Jonathan A. Kaplan, Senior Operating Advisor, LLR Partners
- Kathy Ligon, Founder, Hinge Early Education Brokers
- William R. Loesch, Principal, Goldberg Kohn Ltd.
- Robert Lytle, Managing Dir. & Global Head–Education, EY-Parthenon
- Bradley C. Palmer, Chairman, Palm Ventures LLC
- Ebony Pope, Principal, Rethink Education
- John R. Przypyszny, Partner, Drinker Biddle & Reath LLP
- Aanand Radia, Managing Director, University Ventures
- John Semel, E.V.P. & Chief Strategy Officer, Zovio Inc.
- Zack Shah, Managing Dir.–Education Services & Technology, Lincoln International LLC
- Tom Slagle, Executive Chairman & CEO, Rasmussen College LLC
- Ofa Stead, Operating Partner–Talent, Sterling Partners
- Joshua D. Susser, Partner, Cascadily LLC
- Jonathan D. Tarnow, Partner, Drinker Biddle & Reath LLP
- Philip Vaccaro, Managing Director, EY-Parthenon
- Robin Warner, Managing Director, Oaklins DeSilva & Phillips LLC
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chairman’s Introduction —
Bradley Whitman, Renovus Capital Partners
9:30am – 10:15am
Morning Keynote — Robert Lytle, EY-Parthenon
10:15am – 11:00am
Networking & Coffee
11:00am – 11:45pm
Morning Conversation —
The Regulatory & Legislative Outlook — How Higher Education Act Reauthorization Could Change Investing
11:45pm – 12:45pm
First Panel —
Postsecondary School Investing 2.0 — Challenges & Opportunities
12:45pm – 1:45pm
Networking & Luncheon
1:45pm – 2:45pm
Second Panel —
Investing in Childcare & Pre-School Companies — What Are PE Firms Doing to Add Value?
2:45pm – 3:00pm
Networking & Dessert
3:00pm – 3:45pm
Afternoon Conversation —
Working with Mission-Driven Investors — The View from Impact Investors & Family Offices
3:45pm – 4:45pm
Third Panel —
How to Find & Retain Top Talent — Putting the Right People at the Center of Your Education Portfolio
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, May 31. Just $1,195.
Save $200 of the standard fee! Register by Friday, June 21, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, June 21, when you register two or more people to attend from the same company . This rate increases to $1295 each after Friday, June 21.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
This event is sponsored by:
Arcady Bay Partners
Azure Creek Capital
Bookhead Ed Learning
Bridges Fund Mgmt.
BSG Team Ventures
Cain Brothers & Co.
Carl Marks Advisors
China Hi-Tech Group
CIBC Bank USA
College of Health Care Professions
Cushman & Wakefield
Drinker Biddle & Reath
GLBL ED, S.A. de C.V.
Heidrick & Struggles
Institute of Culinary Education
McKinsey & Company
Morgan Stanley & Co.
National Center for Faculty Development
ProBility Media Corp.
Sprout Health Group
Strada Education Network
Universal Technical Institute