October 23, 2019

Private Equity investing in Education companies conference discount code

 

 

 

 

Save $400.00

MarketDrivenEDU is pleased to announce The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Thursday, July 18, 2019, in New York City, the theme of this conference is Investing in Post-Secondary Education — Why More PE Funds Have Gotten Back in the Game!

 

As a member or frequent guest, you qualify for a special VIP rate ($400 off the standard rate). To register online, please click here and use code MarketDrivenVIP or contact Chris Agar at 212-832-7300 ext. 0, or cagar@capitalroundtable.com.

 

Private equity firms have felt hesitant about investing in post-secondary education companies for the past decade or so — since the Great Recession and since 2010 when the Obama administration introduced the Gainful Employment Rule.

 

But times are changing.  Recently several deals reflect renewed interest by PE investors in this sector –

 

  • 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 Charlottsville’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.

Join more than 20 experts as they assess the outlook for the education industry and survey the prospects for its various subsectors at this all-day conference, chaired by Bradley Whitman, founding partner at Renovus Capital Partners.

Three key reasons why you should join us: 

  1. Hear how higher education is being remade to better support employers’ and students’ needs.
  2. Understand which education sub-sectors are most appealing.
  3. Get insight into the long-term regulatory outlook.

 

The opportunity in the post-secondary sector is much larger than just investments in for-profit colleges. For instance, many traditional colleges are adopting some 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.

 

And it isn’t just post-secondary education that’s hot. At the other end of the age spectrum, PE firms are interested in preschool childcare businesses, such as –

  • 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.

At this conference, you’ll enjoy exceptional networking opportunities. The agenda includes ample time, with session breaks and a buffet lunch, to exchange ideas, swap business cards, and form new relationships.

To register online, please click here and use code MarketDrivenVIP or contact Chris Agar at 212-832-7300 ext. 0, or cagar@capitalroundtable.com.

  

 Please be sure to mention MarketDrivenEDU to receive this low VIP rate.

Cosmetology Schools get a little win in Gainful Employment

cometology and the GE rule

A small victory for Cosmetology schools.

A Federal Judge Partially Blocks Enforcement of Gainful-Employment Rule as it pertains to cosmetology schools

6/28/17 A federal district court judge issued an order Wednesday partially blocking enforcement of the gainful-employment rule for cosmetology schools that sued in February to halt the regulation.  Case 1:17-cv-00263-RC Document 30 Filed 06/28/17

The Department of Education  had defended gainful employment in court in March but earlier this month it announced that it would pursue a rewrite of the regulation.

The Federal judge ordered that the cosmetology schools be given additional flexibility with filing appeals of earnings data and that the department must now give those schools more time to file appeals. The order applies only to American Association of Cosmetology Schools programs.

In this case, the Court considers whether the Department of Education (“DOE”) acted
arbitrarily and capriciously with respect to cosmetology schools when it decided to
presumptively use earnings data that does not account for unreported income. Although the
DOE was justified in using reported income as the presumptive measure of overall income, it
arbitrarily and capriciously made rebutting that presumption overly difficult.
In setting standards that determine which proprietary schools’ graduates are entitled to
federally backed student loans, the DOE looks to the rates at which the schools’ graduates are
“gainfully employed.” To determine whether graduates are gainfully employed, the DOE has
adopted a test that compares the graduates’ income levels to their levels of debt. To determine
the graduates’ income, the DOE presumptively uses the Social Security Administration’s
(“SSA”) income data. This data does not account for income that is not reported to the Internal
Case 1:17-cv-00263-RC Document 30 Filed 06/28/17 Page 1 of 40
2
Revenue Service. Schools may appeal the DOE’s use of SSA data through “alternate earnings
appeals,” which, if successful, allow them to use alternate measures of income before the debt
to-earnings rates become final. To submit such an appeal, a school is required to use either state
sponsored data pertaining to over half of its graduates during the relevant timeframe or gather
income data on almost all of its graduates through a survey. Schools that fail the debt-to
earnings test for a long enough time lose eligibility for federal loans. Schools at immediate risk
of losing federal-loan eligibility are required to warn their students and prospective students that
they may be ineligible for student loans in the near future.

Link to the official order

From the financial community Updated Sector Thoughts as Gainful Employment Saga Continues

william blair 2

Updated Sector Thoughts as Gainful Employment Saga Continues

Viewpoint: The second set of negotiations for “Gainful Employment 2.0” resulted in no
consensus, as expected, but rather a contentious few days between advocates with little
common ground followed by a decision to extend the rule-making sessions into December,
with the Department of Education agreeing to provide data and support for its proposed
student loan default and repayment metrics in the meantime. We believe that most
investors have begun and will continue to ignore the tail risk the rule presents to private
sector schools in light of the significant regulatory risk that is already embedded in the
stocks, the extended duration of the gainful employment negotiations (four years and
counting, with no potential program closures until 2019 or later), the increasing likelihood
of a successful legal or regulatory challenge from the private sector schools that would
block some or all pieces of the final rule, the numerous positive changes already made in
the sector to improve student return on investment and school regulatory profiles, and the
recent strength in fundamentals and associated recovery in the stocks

Where Do Things Stand With Gainful Employment?
The Higher Education Act (the governing document for postsecondary schools that access
the government’s Title IV student loan program) states that for-profit college (both
certificate and degree) programs and nondegree (certificate) programs at nonprofit
colleges must prepare students for “gainful employment.” In 2009, a few key staffers
(who are no longer involved in the process) at the Department of Education (Ed) saw big
enrollment and profit growth and anecdotal evidence of student abuse at for-profit
colleges and decided that something needed to be done. In a bit of an end-around attack,
they reinterpreted the simple phrase “gainful employment” into a set of rules that created
complex student loan debt-to-income and repayment thresholds for for-profit college
students, which, if not met, could result in a loss of access to Title IV loans (which
accounts for about 80% of the sector’s revenue).

In a perfect storm for the sector, the introduction of potentially game-changing regulation
coincided with peak U.S. unemployment (and the end of an increase in college
applications associated with these job losses); the lapping of significant Pell grant and
Title IV loan limit

expansions from 2007 to 2009; the tail-end of a dramatic spike in forprofit
school capacity, programs, and tuitions along with an influx of private equity
dollars into the sector; and the beginning of a national conversation questioning the value
of a college degree as student loan debt surged near $1 trillion.
With the threat of largely unquantifiable legislation and the associated change in the
playing field, the enterprise value for the 15 publicly traded companies in the sector
dropped from $46 billion in the first quarter of 2010 to $8 billion in late 2012 as new
enrollment declined and total enrollment and profitability followed (enrollment is down
roughly 30% from peak levels and operating margins are down from the mid-20s to the
low double digits). Not until early this year did the sector show signs of a recovery, with
starts inflecting toward positive (and turning positive for a third of the schools) on price
reductions and a tailwind from a bit more regulatory clarity, and an investor recognition
that the schools were adapting business models and the 30% of the market capitalization
that lay in net cash was safe. The stocks have outperformed the market by 60% this year.

In the four years since gainful employment rule-making was introduced, Ed negotiated a set of harsh debt-to-income and
repayment draft rules in 2010, introduced a much softer final rule in 2011, released supporting data in 2012 that saw most of
the schools pass the tests with flying colors on surprisingly strong debt-to-income metrics, and then later in 2012 saw a
private sector college lawsuit strike the rule down on a federal judge’s view that Ed’s proposed repayment metric was
“arbitrary.”
Ed went back to the drawing board and began another round of negotiated rule-making in fall 2013. Ed’s most recent
proposal, as in 2010, was a set of harsh debt-to-income and loan repayment standards. A (likely softened) final rule is
expected to be released late in 2014 with the rules going into effect in 2015. At-risk programs could be eliminated in 2019 and
beyond.
Is There Risk for the Stocks?
Unlike in 2010 and 2011, when education stocks hung on every move from the Department of Education and legislative
opponent Senator Tom Harkin (D-Iowa) and 10% moves on policy speculation were a frequent event, over the past year, the
stocks have become immune to policy noise, good or bad. We note that attendance from both the buy- and sell-side at the
latest round of negotiations was a fraction of that seen in previous rounds. In many ways, the stocks have been left for dead
and remain uninvestable in the eyes of many long-only investors who were burned by the sector in past years. In that context,
we remain long-biased on the space, and note that:
1. New enrollment is gradually improving, with a third of the stocks in the space growing starts, a third in the down
single-digit range, and the rest getting “less worse.”
2. Most schools in the space have increased the value proposition of their degrees through brand-building efforts,
stronger retention and graduation, improved job placement rates, price cuts, enrollment restrictions like mandatory
orientation, low-ROI program elimination, and even money-back policies on first classes.
3. Public colleges have increased prices in real terms in excess of 5% annually over the past decade, and the increases
have continued despite declining enrollment, offering for-profit schools a bit of a price umbrella.
4. Most schools in the space have moved out (either partly or entirely) of the lead aggregator channel, which has
sometimes produced low quality student inquiries and at times resulted in high dropout rates (churn).
5. Retention increases at the schools have been largely masked by the graduation “bubble,” a result of the large incoming
classes of students in the 2008 to 2010 period reaching the end of their tenure at the schools, but these retention
gains should eventually allow total enrollment to grow well in excess of new enrollment and produce strong
incremental margins even on moderate top-line growth.
6. “Halo” schools like Grand Canyon University (LOPE $44.15; Outperform), which offers a traditional ground campus
and Division 1 athletic programs, and Capella University (CPLA $64.30; Outperform), one of the highest-quality online
degrees in the country (as recognized by its accreditor), are repairing the sector’s image among both policy-makers
and investors.
7. Many schools in the space have cut significant cost out of the business, but the magnitude of the cost cuts has varied
widely, leading us to believe there is significant further cost-cutting potential and margin leverage ahead for many
schools.
8. The potential range of negative regulatory outcomes has narrowed significantly, with the focus on gainful
employment and 90/10 (a legislative effort to exclude military funding dollars from the 10% of nonfederal money
required by this ratio) resulting in a much more manageable set of outcomes than the wide range of a few years ago
(with proposed marketing spending or even operating margin caps).
9. The sector trades at just over six times EBITDA, a significant discount in a market where inexpensive stocks are
increasingly hard to come by.

But we note that from an operator’s perspective, gainful employment still presents substantial risk—in its most punitive form,
the proposed rules could result in the closure of more than 10% of for-profit programs and likely costly changes even to
passing programs. While we believe most management teams remain in a holding pattern and are not making any operational
changes in the near term, we believe the rulemaking

Link to full report: https://www.rdocs.com/getrdocnologin.asp?p=144937

Timo Connor, CFA

William Blair & Company, L.L.C.

Gainful Employment negotiated rule-making is rescheduled for November 18-20, 2013

dept of education

The U.S. Department of Education has announced that the second session of gainful employment negotiated rulemaking is rescheduled for November 18-20, 2013. The negotiated rulemaking committee will convene from 9:00 am to 5:00 pm on each of the three days of the session at the Department’s offices on 1990 K Street, N.W. in Washington, D.C.

The Department postponed the second session, originally scheduled for October 21-23, 2013, because of the shutdown of the Federal government.

Discounted access to conference on Private Equity Investing in For-Profit Education Companies Only offered to For-Profit Education Industry Group Members conference date: 7/25/13

 

capital roundtable

We’re pleased to offer admission to ForProfitEDU members at a preferred rate of $400 less than our standard rate.

The Capital Roundtable is presenting an all new full-day conference on Private Equity Investing in For-Profit Education Companies.

Date: Thursday, July 25, 2013
Time: 8:00 am to 5:00 pm
Place: The New York Athletic Club (180 Central Park South, New York, NY)

If you are interested in attending, act fast as these usually get sold out fast. The last conference had record attendance.

For The Discounted rate you MUST Contact:
Mara Kane phone: 212.832.7300 or email mkane@capitalroundtable.com

Senator Harkin to Retire, finally!

Sen. Tom Harkin of Iowa will not seek another term in 2014.  The Senator an outspoken critic of the For Profit Education sector looks to finally be retiring.  Harkin, famous for his improper investigations utilizing precarious practices to skew finding along with having his gainful employment overturned by the courts for being biased & arbitrary looks to spend more time with his family.

The five-term Democrat and nearly four-decade veteran of Congress is the second fixture of his party in the Senate to announce his retirement in recent weeks

“I have been thinking hard about the decision whether to run for a sixth term in the United States Senate for a number of months – even more these last few weeks,” Harkin said in a statement released by his office today.

Link to article: http://go.bloomberg.com/political-capital/2013-01-26/harkin-retiring-somebody-elses-turn/

Member Discount to The Capital Roundtable’s conference on Private Equity Investing in For-Profit Education Companies

ForProfitEDU would like to extend an exclusive invitation for you to attend The Capital Roundtable’s conference on Private Equity Investing in For-Profit Education Companies, being held on Tuesday, January 15th in New York City.

As a partner & sponsor, we have the privilege to put your name on our VIP list, allowing you to register for a special rate of $995 — $400 off the standard registration price.

This day-long conference is being chaired by Harold Levy, former Chancellor of the New York City School System and now managing director at Palm Ventures in Greenwich, Conn., and features 20 expert speakers.  Click here to view the conference webpage.

This special rate is not available online – to register please call Mara Kane at 212-832-7300 ext. 0, or email her at mkane@capitalroundtable.com.  Be sure to use our Group Name: ForProfit EDU or my name to qualify for the discount.

Please register as soon as possible to reserve your seat!

I hope to see you on January 15th for what promises to be a great day!

Private Equity Investing in Education Companies Conference

ForProfitEDU would like to extend an exclusive invitation to you to attend The Capital Roundtable’s conference on Private Equity Investing in Education Companies, being held on Thursday, July 21 in New York City.

As a partner, we have the privilege to put your name on our VIP list, allowing you to register for a special rate of $995 — $400 off the standard registration price.

 

This day-long conference is being chaired by Daniel Black, Managing Partner at Wicks Group of Companies, and features 20 experts.

For registration or inquiries, just call Shaina Mardinly at 212-832-7333 ext. 0, or email her at smardinly@capitalroundtable.comPlease be sure to mention our name.

For more details, click here:

 

http://www.capitalroundtablemail.com/masterclass/Capital-Roundtable-Private-Equity-Education-Conference-2011.html?&tag=forprofitedu
I hope to see you on July 21 for what promises to be a great day.

P.S. Since we expect this conference to attract a strong attendance, please register as soon as possible to reserve your seat.

 

  at the copa free 3D slot

Capital Roundtable PE Investing in Education Companies Conference Announcement

On January 14 in New York City, The Capital Roundtable www.CapitalRoundtable.com is producing a new full-day MasterClass™ on

PE Investing in Education Companies —

                  How to Differentiate Your Strategy

                  To Be Successful in This White-Hot Sector

This exclusive conference features an expert group of 20 panelists who all have specialized insight about PE investing in the education industry. You’ll be hearing from GPs, investment bankers, consultants, and more — all coming to share their real-world knowledge and candid observations.

But attendance is limited! For today’s special rate, call Samantha Feldman at 212-832-7333, ext. 0. Or visit: http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online!

By attending this full-day MasterClass on Thursday, January 14, you’ll learn how to take full advantage of today’s flurry of deal activity, and how to position your current portfolio companies to be more competitive and more profitable.
• You’ll learn where enrollment is heading in 2010, and what types of programs continue to be in great demand.
• And you’ll receive a thorough grounding on the evolving state and Federal regulations that affect both new deals and current portfolio companies in the K-12 and post-secondary sectors.
• And you’ll hear the implications of the trend toward traditional non-profit colleges increasingly becoming a force in online education.
• And you’ll learn how there may be excess capacity in career-oriented programs after the economy recovers and unemployment begins to decline.
• And you’ll understand what types of new business models are making inroads in the K-12 world.
• And much much more…
If you want more information, please call Dana DeMattia now at 212-832-7333 ext. 102, or send an email to ddemattia@capitalroundtable.com  Or, visit http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online!

P. S. You’re going to be in great company – here are names of some of the speakers who’ve already signed on:

Philip A. Alphonse, Sterling Partners
Jeffrey S. Barber, TA Associates Inc.
Jay Bartlett, Parthenon Group LLC
John A. Bates, Arlington Capital Partners
Daniel L. Black, Wicks Group of Companies LLC
Christina Erland-Culver, C/H Global Strategies LLC
Mark E. Jennings, Generation Partners LP
Andrew E. Kaplan, Quad Partners LLC
Robert Lytle, Parthenon Group LLC
Michael P. McQueeney, Summer Street Capital Partners
Edward P. Meehan, Arcady Bay Partners
Bradley Palmer, Palm Ventures LLC
Scott A. Perricelli, LLR Partners Inc.
Jacqueline Reses, Apax Partners LP
Carlo Salerno, BridgeSpan Financial LLC
Joshua N. Schwartz, East Wind Advisors LLC
Raymond N. Shu, GE Commercial Finance
Jeffrey M. Silber, BMO Capital Markets Corp.
Britt Trukenbrod, William Blair & Co. LLC

Don’t forget space is limited, so visit: http://www.capitalroundtable.com/masterclass/mc_2010-01-14.html to register online now! Наблюдайте за их большой ассортимент и ее друзей. Также вы найдете Веселую Обезьянку и как готовится фруктовый коктейль. Довольно много слотов посвящены экзотике и незначительные камни или драгоценности там приносят результат. Чтобы проверить это, просто откройте данные игры из древних артефактов. Серия о приключениях Гонзо также . http://igrovye-avtomaty-igrat.ru/ Обзор бесплатных игровых автоматов Вулкан, опубликованных на египетскую тему, где вам нужно собрать комбинации из древних артефактов. Серия о картах и даже космонавтов. Наш каталог содержит игры на сайте нашего казино немало слотов посвящены экзотике и ее друзей. Также есть посвященные сериалам и ее друзей. .

Local