December 12, 2019

ForProfitEDU.com welcomes veteran journalist Andrea Foster

 

ForProfitEDUis proud to welcome future contributions from veteran journalist Andrea Foster.  Our relationship with  Andrea Foster is a positive step in our continued efforts to provide you with quality industry content.  We look forward to the work she will be sharing in the coming months.

Andrea Foster is a veteran journalist whose specialty is education, technology, and Congress. She wrote for eight years about the intersection of academe and technology for The Chronicle of Higher Education, and before that, for The National Law Journal and Congressional Quarterly, among other publications.

Clifford brings in the Big Gun!

 

Former GE Co. Chief Executive Jack Welch is lending  his name and money behind a successful educational entrepreneur Dr. Michael Clifford, injecting some star power into the budding industry of online education.

Mr. Welch is paying more than $2 million for a 12% stake in Chancellor University System LLC, which is converting formerly bankrupt Myers University in Cleveland into Chancellor University. It plans to offer most courses online. Chancellor will name its Master of Business Administration program The Jack Welch Institute.

CCA Starts Sunday

For those of you attending the CCA this year good luck and enjoy.  Many have expressed some disappointment that the location changed away from Vegas this year.  So far the attendance looks strong.  Please feel free to post some highlights from this years show.

What ever happened to Apollo’s Billion Dollar International Investment Fund?

Remember the press release from 2007 about Apollo’s billion dollar invetment with Carlyle?  What ever happened with that?Apollo Group and the Carlyle Group Form $1 Billion Joint Venture to Make Investments in the International Education Services Sector
PHOENIX & WASHINGTON–(BUSINESS WIRE)–Oct. 22, 2007–Apollo Group, Inc. (Nasdaq:APOL) (“Apollo Group” or the “Company”), and private equity firm The Carlyle Group (“Carlyle”), today announced that they have formed a $1 billion joint venture, Apollo Global, Inc. (“Apollo Global”). Apollo Global intends to make a range of investments in the international education services sector. Apollo Global will target investments and partnerships primarily in countries outside the U.S. with attractive demographic and economic growth characteristics. Apollo Group has committed up to $801 million and will own 80.1% of the joint venture. Carlyle has committed up to $199 million and will own 19.9% of Apollo Global. Investments and funding will be subject to approval by the respective investment committees of both Apollo Group and Carlyle. Apollo Global will be a consolidated subsidiary of Apollo Group and Greg Cappelli, Apollo Group’s Executive Vice President and Director will be Chairman of the subsidiary.Commenting on the new venture, Greg Cappelli said, “We are very excited about this new joint venture and our partner, The Carlyle Group. Our core competencies in the education space, combined with Carlyle’s industry relationships and strategic assets across the global education sector, will allow us to successfully capitalize on the tremendous global opportunity that exists in the marketplace.”

Brian Mueller added, “We will continue to invest capital in our high return core domestic business, and through Apollo Global, we will also explore strategic and value creating global acquisition opportunities. Importantly, we reiterate that any investment must meet our disciplined investment criteria as we remain committed to creating long-term value for our shareholders.”

Brooke B. Coburn, Managing Director and Co-head of Carlyle Venture Partners III, L.P., said, “Global demand for higher education is strong. Apollo Group’s operational expertise coupled with Carlyle’s global network make this a powerful partnership.”

The remaining six directors who comprise Apollo Global’s board include Brian Mueller, President and Director of Apollo Group, Peter V. Sperling, Senior Vice President, Secretary and Director of Apollo Group, Roy A. Herberger, Jr., an Apollo Group Director, Jeff Langenbach, Vice President Corporate Development of Apollo Group and Apollo Global’s interim President, Brooke B. Coburn, Managing Director and Co-head of Carlyle Venture Partners III, L.P. and Charles C. Moore, Managing Director on Carlyle’s U.S. Venture and Growth team.

About Apollo Group, Inc.

Apollo Group, Inc. has been an education provider for more than 30 years, operating the University of Phoenix, the Institute for Professional Development, the College for Financial Planning, Western International University and Insight Schools. The Company offers innovative and distinctive educational programs and services at high school, college and graduate levels at 259 locations in 40 states and the District of Columbia; Puerto Rico; Alberta and British Columbia, Canada; Mexico and the Netherlands, as well as online, throughout the world.

For more information about Apollo Group, Inc. and its subsidiaries, call (800) 990-APOL or visit Apollo on the company website at: www.apollogrp.edu.

About The Carlyle Group

The Carlyle Group is a global private equity firm with $75.6 billion under management committed to 55 funds. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $32.3 billion of equity in 686 transactions for a total purchase price of $157.7 billion. The Carlyle Group employs more than 900 people in 21 countries. In the aggregate, Carlyle portfolio companies have more than $87 billion in revenue and employ more than 286,000 people around the world. www.carlyle.com.

 

Whens the next wave of acquisitions comming?

I have heard a few rumors but wanted to see what you think. 2002-2003 was suck a massive year for acquisitions but we haven’t seen a boom year (regarding acquisitions) since. Whose ripe for the picking?  Whens the next roll-up coming out?  There are so many nice mid-sized private for-profit schools out there just lining up for the picking…

Will online masters growth hold up?

After speaking with many analysts over the last few months there are two big fears that keep being repeated. The first being bad debt and the other top fear is the continued growth of online Master programs.  The main reasons mentioned are potential future cuts by corporations of tuition reimbursement & continued decline in economy, thus affordability of education. 

While I have heard of reports indicating that the risk of loosing corporate tuition reimbursement is minimal, are those accurate?  Who were polled?  HR people, they are usually the last to know.

Will the economy get so bad that people fear they will not be able to afford the monthly out of pocket costs of their tuition along with their rent, car, insurance and food?  

The search volume as well as lead volume continue to show strong demand.

What do you think?  Are you seeing anything either in support of this or to the contrary?

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