CVC to snap up stake in chain of private schools

(Sharecast News) - CVC is to buy into a chain of international private schools, it was announced on Friday, after striking a deal with Partners Group. Under the deal, the private equity firm will take a 20% stake in International Schools Partnership (ISP). Swiss peer Partners Group will retain its majority holding.

Financial details were not disclosed. But the Financial Times - citing an unnamed person familiar with the terms - said the deal valued ISP at €7bn including debt.

Founded in 2013 by Partners Group and the chain's management team, ISP now has 111 fee-paying schools in 25 countries, including the UK, Europe, North America, the Middle East and Asia.

Canadian pension fund Omers will also keep its minority stake, which it acquired in 2021, when ISP was valued at €1.9bn.

Jan Reinier Voute, managing partner at CVC, said: "The K-12 sector, and ISP in particular, is an excellent fit for our strategic opportunities strategy, which focuses on supporting value creation in long-term partnership investments.

"We believe ISP is exceptionally well-placed for continued growth."

K-12 schools provide education for children throughout their school life, from kindergarten to year 12, when most will typically be 18.

Andrew Deakin, partner at Partners Group, added: "After a decade of hard work...we stand as a global leader in K-12 education. The tailwinds driving our growth are strong."

ISP will now look to expand, by acquiring more schools in locations with particularly strong demand.

It will also invest in proprietary teaching technology, and in the infrastructure of individual schools.

The private schools market in the UK and US is relatively mature. But demand is considerable in other locations, such as the Middle East.