December 7, 2019

Private Equity investing in Education Conference, Discount available for our readers!

capital roundtable discount

private equity investing in education

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

Coming up on Wednesday, January 22, 2020, in New York City, the theme of this conference is How Successful Investors Spot Rewarding Trends in the Education Industry.

As a friend, you qualify for a special VIP rate — $1095 ($400 off the standard rate). To register online, please click here and use code marketvip or contact Chris Agar at 212-832-7300 ext. 0, or cagar@capitalroundtable.com.

 

Bain Capital Double Impact Fund’s acquisition of Penn Foster — and its subsequent add-on of Ashworth College — is a classic example of how a private equity firm can successfully capitalize on multiple rewarding trends —

  • online learning
  • middle-skills training
  • counter-cyclical investment
  • roll-ups to add value
  • and impact investing

 

But Bain’s deal is also an investment that keeps in focus two critical long-term fundamentals in the education industry — costs and outcomes.

 

  • Costs — Neither Penn Foster nor Ashworth accepts Title IV funding, and both say this enables them to keep the costs of their educations affordable to students. In fact, Ashworth lists its cost per tuition hour at only $64 — one-seventh the fees charged by one of its notable competitors

 

  • Outcomes — And while both schools have faced issues with outcomes over the years, these appear to have improved because of the two education companies’ unrelenting focus on them. For instance, Bain says an astonishing 60% of Penn Foster’s students report higher pay after graduation.

 

Hotly favored areas of investment in education come and go (remember MOOCs and coding schools?), but the twin fundamentals of costs and outcomes remain constant, or, if anything, have actually increased in importance!

 

Join more than 20 experts as they assess the outlook for the education industry at this all-day conference, chaired by Robert Puopolo, partner at Epic Partners.

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 marketvip or contact Chris Agar at 212-832-7300 ext. 0, or cagar@capitalroundtable.com.

  

 

Be sure to mention MarketDrivenEdu to receive this low VIP rate.

 

 

 

 

 

 

 

 

 

 

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M&A activity pick up in EDU

Mergers and Acquisitions activity has spiked recently in EDU.

Red Ventures Buys HigherEducation.com

Charlotte, North Carolina-based digital company Red Ventures announced it has acquired HigherEducation.com (H-E) for an undisclosed amount. H-E is a provider of marketing and enrollment services to post-secondary institutions.

“Online education is a fast-growing industry with enormous scale and significant innovation,” said Red Ventures CEO Ric Elias. “HigherEducation.com brings a unique mix of high-quality digital assets, well-established partnerships, and deep technical expertise, all of which fit perfectly into the Red Ventures model and provide the ideal entry point into the broader education sector.”

Launched in 2007, H-E owns a portfolio of websites that helps more than 150 primarily not-for-profit university partners expand their education offerings and better reach prospective students across the country.

“Red Ventures is the ideal long-term home for HigherEducation.com as we continue to build the leading digital marketplace serving the education sector,” added H-E founder and CEO Patrick Gavin. “I’m grateful to the Vistria team for helping us achieve this milestone. Their shared vision, commitment to our team and sector insight were instrumental in strengthening the foundation of the company.”

Red Ventures bought H-E from Chicago-based private investment firm The Vistria Group. Under Vistria, H-E capitalized on industry relationships and operating expertise to help strategically position the service in its markets and facilitate the company’s growth and profitability.

“We have enjoyed our partnership over the past two years and are thrilled to have been able to deploy the Vistria playbook in support of HigherEducation.com,” explained The Vistria Group co-CEO Martin Nesbitt. “The company is well positioned to meet the evolving needs of both prospective students and education providers, and together with Red Ventures, equipped to reach new heights.”

Red Ventures Buys HigherEducation.com

 

 

2U Announces Partnership and Stake in Keypath

Online program management companies 2U and Keypath Education have announced they will work together to help colleges launch and run online degrees.

2U has agreed to acquire a minority stake in the parent company that owns Keypath Education — an OPM that specializes in working with small colleges and has offices in the U.S., Canada, Australia and England. Keypath Education currently works with 23 university partners.

The partnership will allow 2U to “expand the scope of its services” by working with smaller or lower-tuition degree programs than it typically supports, a 2U press release said. The company is known for working with selective institutions such as the Harvard Business School.

2U also announced this week that it will be offering its students complimentary access to LinkedIn Premium Career, which will help students to network and find jobs. The company will use insights from LinkedIn Premium Career to track students’ career progression and to improve employment outcomes for 2U’s university partners.

https://www.insidehighered.com/quicktakes/2019/02/07/2u-announces-partnership-and-stake-keypath

 

2U, Inc. to Acquire Trilogy Education

  • Adds technical skills-based ‘boot camps’ to 2U’s partner offerings across a variety of technical subjects
  • Creates comprehensive suite of partner offerings across the career curriculum continuum to make education more accessible for the lifelong learner
  • Expands 2U’s partner portfolio from 36 to 68 world-class universities while strengthening its existing relationships
  • Brings together two companies with proven track records of working with top universities, accelerating 2U’s timeline to achieving $1 billion in revenue

Lanham, Md., and New York – April 8, 2019 – 2U, Inc. (Nasdaq: TWOU), a leader in education technology, today announced that it has entered into an agreement to acquire Trilogy Education, a workforce accelerator that prepares adult learners for high-growth careers in the digital economy, for $750 million in cash and stock. Trilogy partners with top universities and leading companies to provide in-person and online skills-based training programs in coding, data analytics, UX/UI, and cybersecurity that bridge regional hiring gaps in more than 50 cities around the globe.

2U is a trusted partner and brand steward to great universities, helping them build, deliver, and support world-class, graduate-level degree programs, professional certificates, and short courses online. Trilogy-powered boot camps are a natural complement to 2U’s existing portfolio of offerings; and 2U’s unparalleled track record of scaling high-quality digital education offerings will help drive Trilogy’s continued growth and online expansion.

 

A Compelling Strategic Fit

“Trilogy Education has built and scaled an incredible business thanks to Dan and his talented team, and we’re thrilled to have them join 2U. Their business is a natural strategic fit and growth driver for 2U that will extend our reach across the career curriculum continuum, deepen our relationships with new and existing partners, drive marketing efficiencies, and open a more direct corporate training and enterprise sales channel for the company. We expect the addition of Trilogy to accelerate our path to $1 billion in revenue by one year from 2022 to 2021,” 2U Co-Founder and CEO Christopher “Chip” Paucek said. “Increasingly, universities are attempting to add practical, technical skills to their degrees. We simply future-proof the degree by adding this type of technical competency.”

https://2u.com/about/press/2u-to-acquire-trilogy-education/

 

Grand Canyon University partners with Onlinedegree.com to make college education more affordable!

grand canyon onlinedegree.com

Grand Canyon University (GCU) and OnlineDegree.com are working together to help make higher education more affordable and accessible for people across the country. Prospective GCU students will be able to satisfy general education requirements at OnlineDegree.com through self-paced online courses, tuition-free to the site’s participants. Thus, significantly lowering the total cost of education and removing impediments that often prevent individuals from taking initial steps toward their degree.

At OnlineDegree.com, students can receive college credit toward their degree taking online courses without the normal applications, entrance exams, or tuition associated with traditional institutions. The fast-growing platform was created by startup veterans and leading academics in higher education to help people go back to school. OnlineDegree.com not only prepares adults for collegiate learning, but works with participating accredited universities to award transfer credit for student’s completion of the courses. With thousands of students now enrolling every month, this provides a flexible pathway for busy adults to complete general education requirements and lower the cost of a college education.

“One of the most critical issues facing our society is access to affordable higher education,” says Grant Aldrich, Founder of OnlineDegree.com. “To enact real change, we must address the issues preventing people from getting the education they need. Grand Canyon University is bringing about that change.”

Grand Canyon University is Arizona’s premier private Christian university helping students find their purpose with next-generation education, including over 200 academic programs with many in high-demand fields. GCU offers traditional students and working professionals generous scholarship opportunities, student support resources, state-of-the-art facilities, and more. A nonprofit institution accredited by the Higher Learning Commission, GCU has been providing a consistent and effective online learning platform for more than a decade, with an advanced online learning management system and a variety of online library resources available anytime, anywhere.

“Grand Canyon University has a long history of making college more attainable for busy adults and non-traditional students,” says Cameron Whitcomb, Director of Strategic Alliances. “Working together with OnlineDegree.com furthers our mission of helping everyone reach a faith-based institution offering both academic quality and integrity.”

Through the alliance with OnlineDegree.com, prospective students will have up to 44 units of available credit that could be applied toward a degree at GCU. OnlineDegree.com students will also receive an additional 10% scholarship off tuition from the standard tuition rates when they enroll.

For more information, students can visit https://bit.ly/2SRpFhX .

About Grand Canyon University
Grand Canyon University is Arizona’s premier private Christian university helping students find their purpose with next-generation education, including over 230 academic programs with many in high-demand fields. GCU offers traditional students and working professionals generous scholarship opportunities, student support resources, on-campus state-of-the-art facilities, dynamic online classrooms, innovative learning experiences and more. https://www.gcu.edu

About OnlineDegree.com
On a mission to make higher education more affordable and accessible for everyone, OnlineDegree.com is a team of startup veterans and leading academics who believe everyone should have the ability to go to college. Through its free platform, students can explore different courses and subjects on their own schedule, be better prepared for collegiate learning, and could receive college credits toward their degree at participating universities throughout the United States. Working adults now have a bridge to start their path back to school regardless of their finances or busy schedules. https://www.onlinedegree.com/about-us/.

Media Contact
OnlineDegree.com Press Team
Email: press (at) onlinedegree (dot) com

Grand Canyon University
Bob Romantic – 602-639-7611 bob.romantic (at) gcu (dot) edu

Online Education expected to continue it’s growth in 2019

edufficient advertising for online education

 

The number of students who were enrolled exclusively online grew to 15.4 percent  which is up from 14.7 percent in 2016, or about one in six students. The percentage of all students who combined online and in-person courses grew faster, to 17.6 percent in 2017 from 16.4 percent in 2016.  The percentage of students who took at least one course online grew to 33.1 percent, from 31.1 percent in 2016.  Online education continues to prove it’s not only here to stay but growing.

With traditional non profit institutions, OPM’s & for-profits continuing to cater to this growing market it’s clear that there is a lot of opportunity ahead.  Most of the traditional non profits who succeed are generally partnering with OPM’s like 2U or OPM alternative facilitators like Edufficient.  Those who try it alone continue to have a high failure rate.

 

View the Report from the National Center for Educational Statistics : https://nces.ed.gov/pubs2019/2019021.pdf

Lamar Alexander will not seek re election

lemar alexander wont seek reelection

Tennessee Republican Lamar Alexander, one of the few pragmatic dealmakers left on Capitol Hill, is the first senator to announce he won’t run for re-election in 2020.

“The people of Tennessee have been very generous, electing me to serve more combined years as Governor and Senator than anyone else from our state. I am deeply grateful, but now it is time for someone else to have that privilege,” the longtime politician said in a statement. “I have gotten up every day thinking that I could help make our state and country a little better, and gone to bed most nights thinking that I have. I will continue to serve with that same spirit during the remaining two years of my term.”

Discounted Rate for MarketDrivenEDU members to Private Equity Investing in Education-Focused Companies Conference —

edu conference

MarketDrivenEdu is pleased to announce it’s 10th annual Media sponsorship of The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Tuesday, January 15, 2019, in New York City, the theme of this conference is The Role for Private Capital in Bridging the Gap Between Education & Employment.

 

As a friend of MarketDrivenEdu, you qualify for a special VIP rate — $995 ($500 off the standard rate). To register, please call Kristi Paris, at 212-832-7300 ext. 0, or email her at kparis@capitalroundtable.com.

 

In this politicized age, it seems like people don’t agree on much to do with education. For instance —

  • 57% of Republicans support charter schools, versus just 36% of Democrats.
  • Only 33% of Republicans think spending on public schools in their district should be increased, versus 58% of Democrats.
  • Just 28% of Republicans believe college is worth the cost, versus 43% of Democrats.

If you’re a private investor, those stats may make you feel nervous. For instance, you may not want to invest in a for-profit college during Donald Trump’s administration, if the next president may be Elizabeth Warren and the rules may change again.

 

One path forward lies in something everyone can agree on — that the U.S. education system needs to do better at preparing people for joining the workforce.

 

Join more than 20 experts as they assess the outlook for PE investing in the education sector at this all-day conference, chaired by Daniel Pianko, co-founder & managing director at University Ventures.

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, please call Kristi Paris, at 212-832-7300 ext. 0, or email her at kparis@capitalroundtable.com.   

 

Please be sure to mention MarketDrivenEdu to receive this low VIP rate. And note this rate is not available online. 

Betsy DeVos plans to eliminate gainful employment regulations!!

Betsy Devos for profit education

Education Secretary Betsy DeVos plans to eliminate regulations that forced for-profit colleges to prove that they provide gainful employment to the students they enroll, in what would be the most drastic in a series of moves that she has made to free the for-profit sector from safeguards put in effect during the Obama era.

The so-called gainful employment regulations put into force by the Obama administration cut off federally guaranteed student loans to colleges if their graduates did not earn enough money to pay them off. That sent many for-profit colleges and universities into an economic tailspin because so many of their alumni were failing to find decent jobs.

The Obama regulations — years in the making and the subject of a bitter fight that pulled in heavy hitters from both parties who backed the for-profit schools — also required such schools to advertise whether or not they met federal standards for job placement in promotional materials and to prospective students.

Its clear she understands the logic that a law should not apply to some colleges but not all of them…

Link to article: https://www.nytimes.com/2018/07/26/us/politics/betsy-devos-for-profit-colleges.html 

Education Companies for PE Investors–Special Invitation for July 19

edu conferenceI’m very pleased to be a partner of The Capital Roundtable for its full-day annual winter conference on “Private Equity Investing in Education-Focused Companies.

 

Coming up on Thursday, July 19, in New York City, the theme of this conference is
How PE Firms Are Engineering A New Generation of Education Companies.

 

I’m reaching out to you, as a friend of my firm, to offer you a special VIP rate — $500 off the standard rate.  Your price to register is only $995! To register at this special rate, please contact Julie Berger at 212-832-7300, ext.0, or jberger@capitalroundtable.com.

You’ll hear from more than 20 private equity investors and bankers, and education company managers discussing how they’re partnering with schools, corporations, and other kinds of investors to build “next-gen” companies that can drive the remodeling of the U.S. education system and thereby deliver better outcomes for students and better returns for investors.

Click here to learn more about the program.

Chairing the conference is Shoshana Vernick, a co-founder of Sterling Partners’ Education Opportunity Fund. She joined Sterling in 2003, and has devoted her tenure on the investment team, working on all aspects of the deal process including identification and due diligence, and management and oversight of the active portfolio.

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, please call Julie Berger, at 212-832-7300 ext. 0, or email her at jberger@capitalroundtable.com

 

Please be sure to mention MarketDrivenEDU to receive this low VIP rate.  And note this rate is not available online. 

Distance Education growing but not for for profits

Distance Education across the US has been growing steadily, with the exception of for profits.  Tracking Distance Education in the United States – a recent report released by Babson Survey Research Group (BSRG). show the dramatic shift.

 

To see the results of the study: https://www.pearsoned.com/grade-increase-tracking-distance-education-u-s-infographic/?utm_medium=email&utm_source=TiDL_eNews_April2018&utm_campaign=7010N0000003Pqu&cmpid=7010N0000003Pqu

Pearson experiments on thousands of students without their knowledge!

Pearson, the largest education company in the world, conducted a “social-psychological” experiment on thousands of college students in the United States — without asking for permission — by adding language into some of its software programs and then tracking how much the messages affected problem-solving.

The experiment and results were discussed by Pearson researchers, who unveiled a paper on the matter at this month’s 2018 convention of the American Educational Research Association in New York.

Student privacy advocates have long been concerned with education publishing companies using students as “guinea pigs.” Companies, including Pearson, have inserted draft questions into annual tests for possible future use. Students and their families do not know when and which questions are part of the company’s own research on question effectiveness.

Education Week reported on the paper, titled “Embedding Research-Inspired Innovations in EdTech: An RCT of Social-Psychological Interventions, at Scale.” Nearly 9,300 students at 165 college and universities were part of the experiment during spring 2017 when they used MyLab Programming, a Pearson software product employed in conjunction with a computer programming textbook. The publication said:

Without seeking prior consent from participating institutions or individuals, the company embedded “growth-mindset” and other psychological messaging into some versions of one of its commercial learning software programs. The company then randomly assigned different colleges to use different versions of that software, tracking whether students who received the messages attempted and completed more problems than their counterparts at other institutions.

The results included some modest signs that some such messaging can increase students’ persistence when they start a problem, then run into difficulty. That’s likely to bolster growth-mindset proponents, who say it’s important to encourage students to view intelligence as something that can change with practice and hard work.

Link to Post article

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