EQT has reinvested in private school operator Nord Anglia, leading a new investor group in a $14.5 billion acquisition—while returning capital to previous investors.
The new consortium includes Canada Pension Plan Investment Board, Neuberger Berman Private Markets, CF Alba and Dubai Holding. Bloomberg reported that the deal will see EQT return $5.4 billion to investors by selling a stake in the London-headquartered company.
EQT has invested in Nord Anglia since 2008, when Baring Private Equity Asia—now EQT Private Capital Asia—acquired the business for $360 million. The company, which was previously based in Hong Kong, then went public in 2014 before being taken private again by EQT and CPPIB in 2017.
Today, Nord Anglia runs 80 international day and boarding schools across Asia, Europe and the Americas.
EQT agreed to the deal in October amid a tough PE exit environment.
PitchBook lead analyst Tim Clarke previously characterized the transaction as a kind of “private IPO,” whereby shares are sold to preselected institutional investors rather than being floated on the stock market.
The appeal is that such a deal provides liquidity to LPs while avoiding the scrutiny of public markets.
The strategy reflects a broader trend among PE firms, where GPs are extending their hold periods, often through secondary sales to continuation vehicle set up to let existing LPs to cash out while bringing in new commitments.
Featured image by Catherine McQueen/Getty Images
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