Finance
Partners Group explores sale of stake in Britain’s ISP schools, sources say
Global Banking & Finance Review®
Company
By Amy-Jo Crowley and Andres Gonzalez
LONDON (Reuters) – Buyout firm Partners Group is exploring options including the sale of a stake in Britain’s International Schools Partnership (ISP), three people with knowledge of the matter said, as it looks to cash in on the popularity for education assets.
A sale could value ISP at above 5 billion euros ($5.38 billion) given current annual earnings of more than 250 million euros and the demand for education assets, one of the sources said.
ISP has 88 schools in 24 countries and is focused on primary and middle-year schools.
Switzerland’s Partners Group is expected to launch an auction process in the first half of next year, when it has visibility on revenue and school enrollment numbers at a business it launched in 2013 and which has grown to run schools with more than 80,000 students, this person and another of the sources said.
The process is in the early stages and the sources cautioned a deal is not certain and subject to market conditions, asking not to be identified because the matter is confidential.
A spokesperson for Partners Group declined to comment, while ISP did not immediately respond to requests for comment.
The education sector has attracted a wave of dealmaking recently with investors including private equity firms lured by the stable demand for education through the economic cycle and the long-term revenue visibility schools provide.
Canadian investor OMERS private equity acquired a 25% stake in ISP three years ago, valuing the company at 1.9 billion euros including debt. OMERS declined to comment.
Sweden’s EQT AB last month formed a consortium with Neuberger Berman Private Markets and the Canada Pension Plan Investment Board to take ownership of international schools operator Nord Anglia Education for $14.5 billion including debt.
($1 = 0.9287 euros)
(Reporting by Amy-Jo Crowley and Andres Gonzalez; Editing by Tommy Reggiori Wilkes and David Evans)
Private equity refers to investment funds that buy and restructure companies that are not publicly traded. These funds are typically managed by firms that raise capital from investors to acquire stakes in private companies.
An auction is a public sale in which goods or property are sold to the highest bidder. In finance, auctions are often used to sell assets or securities, allowing buyers to compete for ownership.
Equity represents ownership in a company, typically in the form of shares. It reflects the value of an owner's stake in the business after all liabilities have been deducted.
Education assets refer to investments in educational institutions or services, such as schools and universities. These assets are often considered stable investments due to consistent demand for education.
An investment is the allocation of resources, usually money, in order to generate income or profit. Investments can take various forms, including stocks, bonds, real estate, and private equity.
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