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Private Equity Scores with Education Deals

Financial Times Markets •
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Investors are studying the UK higher education sector with alacrity. Among them is Galileo Global Education, Europe's biggest for-profit higher education group, which bought Regent's University London in 2020. Global University Systems (GUS) acquired the University of Law eleven years ago and Y Schools recently.

GUS runs 36 institutions with over 174,000 campus students. Private universities often charge more and lack the clout of non-private peers. Regent's University London, owned by Galileo, charges £24,500 annually, more than double domestic non-private university fees.

While private universities face reputational risks, as seen with Regent College London's 2024 regulatory issues, financial buyers see real estate monetisation, predictable revenue, and a growing education market. Morgan Stanley projects the industry will generate $8tn in revenue by 2030.