Big bang in education: Investor influx in private schools

The start of the school year marked the ringing of the bell… for an investment barrage from domestic and international players alike, who are rushing to position themselves in one space after another. The hustle they are showing for acquisitions of private schools in Greece shows that they are trying to occupy strong positions at a time of intense ferment in an industry that appears to have strong growth prospects.

This, however, does not mean that the corresponding announcements are forthcoming. Education chiefs are trying to keep a low profile. The reason is that they do not want to cause concern to the parents of their students and do not want it to be assumed that the educational programme of the children will be disrupted in any way. Thus, they prefer, in most cases, to either allow time to reveal any deal or discreetly inform parents that there are impending personnel changes at the school their children attend.

The deals
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The latest “hit” is the entry of British private education giant Inspired Education Group into the Kosta-Gitona (CGS) private school, which has been targeted by foreign investment groups and shipowners. Yesterday it was officially announced that Lebanese-born Nadeem Nsouli’s Inspired Education Group would become a shareholder.

Inspired has also entered the Moraitis School, which informed parents internally and discreetly about the shareholding development and as far as CGS is concerned, it is not yet clear whether it will be the only shareholder, as the market has been buzzing since August about a closed deal with Olympus Investment SA, which is controlled by shipowner Vassilis Laliotis.

The Moraitis School

Olympus Investment reportedly entered Costeas-Geitonas Schools (CGS) through a share capital increase of €20.2 million, which it contributed in exchange for 807,139 new CGS shares, representing 89% of the total shares, with the remaining 11% staying with the Geitonas family.

The funds were directed towards covering the school’s losses and debts, and the question of why there is such strong interest in this school isn’t hard to answer.

Beyond its value as an educational institution, CGS signed a Long-Term Lease Agreement just last May with Elliniko S.A. (Lamda Development) for an initial term of 30 years, with an option to extend for an additional 30 years. The agreement stipulates that Costeas-Geitonas Schools will undertake the development and operation of a modern Primary and Secondary Education institution in the A-P4 zoning area within the Metropolitan Pole of Ellinikon – Agios Kosmas. The educational institution will be named “CGS at The Ellinikon.” Sources from “THEMA” indicate that the deal with Nsouli focuses on developing this school in Ellinikon, with Inspired taking on the funding and development of the project.

Another deal involving a Greek private school and a British education company is pending confirmation. This concerns the International School of Athens (ISA), which until recently was part of BCA College. The college’s president, Vasilis Daskalakis, is said to have agreed to sell ISA to Atif Hassan’s Dukes Education, which is expanding its portfolio, as it exclusively invests in educational institutions. Dukes Education already owns schools outside of the UK in Prague, Bucharest, Zagreb, Dublin, Lisbon, Porto, Madrid, and even the Swiss Alps.

BCA College president Vassilis Daskalakis has reportedly agreed with Atif Hassan’s Dukes Education (right) to sell ISA

New Agreements

The aforementioned deals are just the beginning. The appetite for educational investments has grown, with new agreements expected soon. Discussions are underway, and some private school owners are already being approached for initial responses.

The greatest interest comes from British, French, and Arab investment funds, particularly companies, individuals, and funds with experience and specialization in private education. Several agreements for partnerships between groups are in the final stages or under discussion.

One such example is the collaboration between the listed company Premia Properties and Doukas Schools. This partnership began with the acquisition of the Doukas school facilities in Paradisos, Marousi, where the school remains a tenant, retaining the right to repurchase within 15 years. Now, both parties are looking for additional schools to acquire in Southern Greece, with Premia Properties investing in the real estate and Doukas Schools handling the educational operations.

Meanwhile, other investors are targeting real estate that could meet the growing demand for facilities from educational organizations. A notable example is shipowner George Prokopiou’s acquisition of four plots from Lamda Development in Ellinikon, intended for the construction of educational infrastructure.

Additionally, Dimitris Andriopoulos, CEO of Dimand, recently revealed that part of a 50,000 sq.m. building being constructed on the former Softex site in Votanikos may be used by a private educational institution.

On another front, Ioanna Siotropou’s Omega Schools, specializing in aviation, tourism, business, and maritime academies, have launched a collaboration in the yachting sector with Sir Stelios Haji-Ioannou’s foundation. The foundation offers scholarships to students for yacht captain training, with part of the classes held on the Haji-Ioannou family yacht, “Clelia,” at Marina Zea.

It’s no secret that some investors who have already made moves into private schools in Greece don’t plan to stop there. Dukes Education, for example, is actively seeking more schools to purchase, while BC Partners, led by Nikos Stathopoulos, is also on the lookout for new investments.

Why So Much Interest?

The sector’s growth is a key driver of this interest. According to ELSTAT data, the share of private education in total student enrollment has been rising, from 6.21% in 2019 to 7.38% in 2022.

The same study shows that the average monthly household expenditure on education in Greece increased from €47.23 in 2018 to €54.73 in 2022. Additionally, the number of private kindergartens grew from 649 to 817 between the 2018-2019 and 2021-2022 academic years. Over the same period, the number of private primary schools remained stable at 159, private middle schools increased from 99 to 109, and private high schools rose from 92 to 103.

Another key reason why private schools have become a magnet for investors is the ongoing residential mega-project in Ellinikon. Since the southern suburbs of Athens lack enough large educational institutions to meet the expected surge in demand for educational services, investors foresee a need for prestigious private schools that can accommodate international students from the new residents of the Athenian Riviera.

Nadim Nsouli, the Lebanese-British Owner of 115 Private Schools

In the UK, Nadim Nsouli is a businessman who holds significant sway among the elite. The Lebanese-British entrepreneur became the owner of the famous Wetherby Nursery last year, where wealthy and famous parents vie to enroll their children.

Attending Wetherby is a matter of prestige, as Princess Diana sent Princes William and Harry there. The Beckhams enrolled their children at Wetherby, and it’s common to see celebrities like supermodel Elle Macpherson, magnates, hedge fund managers, and shipowners greeting their children outside. Wetherby caters exclusively to the global elite’s elite.

Kings and tycoons are crowding the waiting lists in order for their children to secure a place at the training schools of Livanovretan businessman Nadeem Nsouli (Inspired), who has now joined the shareholding of Costea -Geitonas Schools and the Moraitis School

Wetherby is one of many schools owned by the Inspired Education Group, which is making a strong entrance into private education in Greece as one of the largest educational groups in the world. It manages 115 private schools globally, operating in 24 countries and serving about 90,000 students. Following a “buy and build” strategy, Inspired acquires existing schools, expands them, and also builds new ones. This is why Inspired’s investment company, Educas, has offices in cities like London, Milan, Auckland, Bogotá, Johannesburg, and Dubai.

Notably, Nadim Nsouli, the founder, chairman, and CEO of Inspired, a Lebanese-British entrepreneur, proudly states that Inspired attracts investments worth billions from some of the most prestigious global investors, such as GIC (Singapore’s sovereign wealth fund), TA Associates, Warburg Pincus, Stonepeak, and family offices like Oppenheimer and Mansour. Nsouli commented, “In less than nine years, we have become the world’s leading group of high-quality schools. We achieved this by focusing on providing an exceptional holistic educational journey for our students worldwide, with over 90% of them entering their first-choice university destinations. Besides owning some of the world’s top schools, we are rapidly developing our fully online school and expanding our technological initiatives in our classrooms. I am proud to have gathered some of the most esteemed and high-profile investors to support our expansion.”

The two companies, Inspired and Educas, were founded in 2013 by Nadim Nsouli when he invested in Reddam House, a leading school group in South Africa. This was the starting point for the global growth of the group, beginning with Reddam House, which acquired and built nine more schools in South Africa and the Reddam House Berkshire school near Wokingham, England. In 2015, the school facilities at Winnersh were taken over from Bearwood College.

The Know-How

Before creating this global education giant and founding the Lyla Nsouli Foundation for Children’s Brain Cancer, which focuses on brain cancer treatment, Nsouli was a partner at Providence Equity Partners, a private equity firm managing $40 billion. His experience in education came from his role as a member of Providence’s Global Investment Committee, where he led the company’s educational investment initiatives in Europe and the Middle East.

Before joining Providence in 2006, the Lebanese-British entrepreneur was the head of The Gores Group in Europe, a private investment firm based in Los Angeles. Prior to Gores, he founded and led Lago Ventures, a venture capital company, and earlier in his career, he was part of the media and telecommunications investment banking teams at Morgan Stanley and J.P. Morgan in London.

Nsouli began his career in New York as a corporate lawyer at Jones, Day, Reavis, and Pogue, after completing his studies, including an MBA with distinction from INSEAD, a Doctorate of Law from New York University School of Law, and an undergraduate degree magna cum laude from Georgetown University.

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