Private Equity in Education?

Posted on June 8, 2007


Laureate Education accepted a $3.5+ bln offer from an investor group that includes KKR.

With regard to Laureate, I am curious to see if and how private equity begins to creep into the public education arena – private equity is already purchasing mega-sized infrastructure projects such as toll roads and bridges. It is not much of a stretch to think that the private equity model of efficiency gains and increased organizational effectiveness would be a solution to attritting school performance acorss the US. The demands of taxpayers are constantly increasing. The competition for entrance to colleges and universities is cutthroat. Creeping into the for-profit education sector could be the first step into a foray to public education sector.