September 27, 2021

EDU PE conference packed & mood optimistic !

Yesterdays Capital Round Table conference for PE investing in EDU was a full house.  It was good to see some many of the industry’s players together in one room discussing current issues & trends facing Education.  In addition, Anthony Miller Deputy Secretary and Chief Operating officer at the U.S. Department of Education was there to answer questions regarding current and pending legislation.  Tony was refreshingly honest when he said the the Department understands and acknowledges that for profit education providers are critical to reach America’s goal of education attainment.  He praised the continued innovation provided by the industry and welcomes more of the same.

2012 Issues to remember:

 

The Change

  • A change in the President will result in a new DOE
  • A change in the Senate will result in a new head of the Senate Sub-Committee
The Result
  • A favorable shift in regulations will lift the entire industry
The Caution
  • The momentum to outcomes is already underway and will not change.  Broadly, this is good for the industry

 

MOST Important The three rules – #1 Student Success, #2 Student Success, #3 Student Success

Long-term strong demographics and demand create a solid base for growth

Regulatory changes are largely complete in post-secondary while valuations remain at historic lows

Dramatic changes in traditional schools are underway

Real opportunities exist to build world-class companies

Great outcomes=Great businesses

The next conference for PE in EDU I believe is in June or July, it’s worthwhile to attend!