CVC Capital Partners has purchased a 20% stake in International Schools Partnership, a private school operator—its second investment in the K-12 education sector.
Partners Group will remain the largest shareholder while Canadian pension fund OMERS, which invested in 2021, will also keep its stake. The Financial Times reported that the deal values the group at €7 billion (about $8.2 billion)—more than triple its worth four years ago.
Partners Group founded London-based ISP in 2013. Today, the group operates 111 schools in 25 countries. The new investment is made through CVC‘s Strategic Opportunities strategy, which targets long-duration investments in growth platforms.
CVC made a partial exit from GEMS Education, another private K-12 education provider, last year. It sold a majority of its stake to a consortium led by Brookfield, having first invested in 2019.
Despite regulatory sensitivities, private education continues to be an attractive target for PE investors because of its consistent demand and reliable long-term cash flow.
Earlier this year, an EQT-led group completed its $14.5 billion sale of Nord Anglia Education to an investor consortium that included GIC and Qatar Investment Authority, delivering a $5.4 billion payout.
Recently, Brookfield invested $825 million in Spring Education Group, a US private school operator, as part of its strategy to gain exposure to the sector and support resilient, cash-generating businesses.
Featured image by Jonathan Kirn/Getty Images
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