trendducation expert webcast 1
TRANSCRIPT
MODERATOR:
Alexander B. Kasdan, Managing Director, DelMorgan & Co.
EXPERT PANEL:
Keith Zakarin, Partner, Chair of Education Practice, Group Duane Morris LLP
Robert S. Lytle, Partner, Co-Head of Education Practice, The Parthenon Group
Neil Morganbesser, President and CEO, DelMorgan & Co.
TRENDS AND TRANSACTIONS IN
PRIVATE POST-SECONDARY EDUCATION
June 5, 2014
1
Alexander B. Kasdan, Managing Director, DelMorgan & Co., has more than twenty years of investment banking, real estate, corporate law and corporate strategy experience. Mr. Kasdan has executed over 100 domestic and cross-border transactions totaling more than $10 billion in overall volume in a variety of industries. Prior to joining DelMorgan, Mr. Kasdan founded Convergence Capital Partners, LLC, a boutique investment banking advisory and real estate investment firm and was an investment banker at Peter J. Solomon Company, Credit Suisse First Boston and Merrill Lynch, in New York and Moscow, Russia. Mr. Kasdan practiced law with O’Melveny & Myers LLP (formerly O’Sullivan Graev & Karabell LLP) and Paul, Hastings, Janofsky & Walker LLP (formerly Battle Fowler LLP), where he specialized in mergers and acquisitions, private equity and corporate finance transactions. In addition, Mr. Kasdan served as Corporate Counsel in charge of business development at Schlumberger Ltd., a global oilfield and information services company. Mr. Kasdan graduated magna cum laude from Middlebury College with a B.A. degree in Economics and Italian and was elected to Phi Beta Kappa during his junior year. In addition, he holds a J.D. degree from Columbia University Law School and has studied at the University of Florence in Italy. Mr. Kasdan is admitted to the Bar in the State of New York. Mr. Kasdan is a Senior Advisor to Governance and Transactions LLC, an advisory firm established in 2003 by Mr. James L. Gunderson, former Secretary and General Counsel of Schlumberger Limited, to assist boards, management and owners with corporate governance, compliance, structuring and strategic transactions.
100 Wilshire Blvd. Suite 750 Santa Monica, CA 90401 +1 (310) 980-1718 [email protected] www.delmorganco.com
2
Keith Zakarin is the chair of Duane Morris' Education Practice Group and is a member of the firm's Partners Board. Mr. Zakarin exclusively represents private postsecondary schools and colleges. His representation of these schools nationwide includes such diverse areas of law as student and employee litigation, regulatory and administrative counseling and litigation, mergers and acquisitions, accreditation counseling and advocacy, employment counseling and risk management. Mr. Zakarin is not just a lawyer representing colleges; he owns and operates an accredited private college. Mr. Zakarin is a 1986 graduate of the University of California, Berkeley, Boalt Hall School of Law, and a summa cum laude graduate of the University of California at San Diego.
750 B Street, Suite 2900 San Diego, CA 92101-4681 +1 (619) 744-2278 [email protected] www.duanemorris.com
3
Robert S. Lytle is a partner and Co-Head of The Parthenon Group’s Education Practice. For more than 15 years, he has led client engagements on general strategy, performance improvement, and investment due diligence across a broad spectrum educational organizations. Robert’s clients include high-growth companies, publicly listed Global 100 companies, non-profit institutions, financial investors, and international governments. In addition, Robert has participated in numerous high-profile corporate turnarounds, mergers, divestitures, and privatizations in Europe, North America, Latin America, the Middle East, and Asia. Robert is a frequent speaker at leading global forums in the education sector. Prior to joining Parthenon, Robert was with Bain & Company and served as a U.S. Army aviator. He holds a B.S.E. in Economics from the Wharton School of Business and an M.B.A., with high distinction, from the Tuck School of Business at Dartmouth.
50 Rowes Wharf Boston, MA 02110 +1 (617) 478-7096 [email protected] www.Parthenon.com
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Neil Morganbesser is co-Founder and President & CEO of DelMorgan & Co. where he provides senior leadership within the firm and helps oversee all client engagements. Mr. Morganbesser is also CEO of Globalist Capital LLC, DelMorgan’s broker-dealer affiliate. Mr. Morganbesser has over 20 years of experience providing financial and strategic advice to a full range of clients, including entrepreneurs, large corporations, governments, family businesses, private equity funds, and special committees of public companies. Mr. Morganbesser has been affiliated with some of the leading institutions in the world, and his experience ranges from representing the offshore owners in the sale of a small, private U.S. company for $10 million to representing the special committee of a large, public company in a $9 billion negotiated management buyout with a highly complex financial structure. Mr. Morganbesser has truly global experience with the most sophisticated transactions, across a broad range of industries and in a large number of jurisdictions, as the lead banker on a wide variety of transactional and other advisory assignments, including domestic and cross-border mergers, acquisitions, joint ventures, sales and divestitures, restructurings, special committee assignments, unsolicited acquisitions and hostile defense. With transactional experience in over 30 countries, Mr. Morganbesser has successfully advised on over 75 transactions. Until May 2008, Mr. Morganbesser was the head of West Coast and Asia Mergers & Acquisitions at Bear Stearns & Co., as a Senior Managing Director based in Los Angeles. Prior to joining Bear Stearns in May 2001, Mr. Morganbesser was an investment banker in the Mergers, Acquisitions and Restructuring Department at Morgan Stanley (in New York from 1993-1998 and in Los Angeles from 1998-2001). From 1990-1993, Mr. Morganbesser was a corporate and M&A attorney at the preeminent New York law firm of Wachtell, Lipton, Rosen & Katz. Mr. Morganbesser graduated with an A.B. magna cum laude in Applied Mathematics / Economics from Harvard University (Phi Beta Kappa) in 1986 and received his J.D. and M.B.A. degrees (Order of the Coif, with honors) from Stanford University in 1990.
100 Wilshire Blvd. Suite 750 Santa Monica, CA 90401 +1 (310) 319-2000 [email protected] www.delmorganco.com
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ORGANIZER & HOST: Anna Spektor is the Founder and host of Expert Webcast, a sophisticated digital source of expertise for the professional and the business communities domestically and internationally. Producing the industry’s leading webcast panels covering corporate, M&A, restructuring and finance topics, Expert Webcast addresses timely and relevant issues faced by general counsel, C-level executives, boards of directors, business owners and their advisors, as well as institutional investors.
100 Wilshire Blvd. Suite 750 Santa Monica, CA 90401 +1 (310) 995-6579 [email protected] www.expertpresence.com
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MAJOR TOPICS • Current investment climate and market in private post-secondary
education • Key federal and state regulatory issues that affect risk, pricing
and structure • Student and employee litigation and risk management • Identification of risk indicia and risk assessment • Trends in auction activity and related purchase and sale strategies • Case studies
7
OVERVIEW OF THE POST-SECONDARY SPACE
• Enrollments o Macro-economic cycle o Difference between two and four year schools o Online competition from traditional schools
• Deal activity o Exiting PE players too long in the tooth o Smaller schools with exiting owners o Some large (5,000 students +) that won’t wait any longer o Regulatory issues driven deals, especially 90-10
8
OVERVIEW OF THE POST-SECONDARY SPACE
• Key federal issues driving deals o Gainful employment considerations; expensive degree
programs in particular – 90-10 plays, especially training schools
o Overall nastiness in the space by the feds causing owner fatigue
o Composite-score driven deals
• Accreditation environment and its affect on deals o Regionals not willing to play ball on for-profit conversions
(Thunderbird) o Push at the ED level to federalize accreditation has created a
reactionary climate as the accreditors, particularly the nationals. This creates instability
o Diligence on placement outcomes important
9
TRANSACTIONAL ENVIRONMENT IN THE POST-SECONDARY SPACE
• Range of deal pricing o Auction activity still highest, except in troubled school deals o Small schools trade at 3-5x EBITDA o 90-10 plays at significant premiums to EBITDA o Regulatory clarity has substantial impact on pricing
• Successful deals • Emphasis on regulatory basics, especially outcomes • More exotic 90-10 situations pre-cleared with ED more often • More modeling on GE • Deep evaluation of student ROI – both good for the overall
value proposition and good for metric compliance
10
WHERE IS THE SECTOR HEADING?
• Differentiation increasingly important • Persistence, persistence, persistence • Deeper channel partnerships (e.g., uniformed services and
corporate) • Innovation toward competency-based degrees • Price battles
THE PARTHENON GROUP
Key Issues and Trends in For-Profit Higher Education
Parthenon Perspectives
June 2014
THE PARTHENON GROUP
2
0.0
0.5
1.0
1.5M
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
5%
15%
('99-'12)CAGR
-5%
0%
('12-'19)CAGR
2 Year For-Profit4 Year For-Profit
0
5
10
15M
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2 Year For-Profit
4 Year For-Profit
2 YearNot-For-Profit
4 YearNot-For-Profit
2%
2%
15%
5%
('99-'12)3%
CAGR
0%
-2%
0%
-5%
('12-'19)-1%
CAGR
Enrollments: Macro Economics Enrollments across all institution types are expected to flatten or decline slightly over the next 5-7 years
H F
Post-Secondary Enrollments, 1999-2019F
Source: Parthenon HED Enrollment Forecast
H F
For-Profit Institution Enrollments, 1999-2019F
THE PARTHENON GROUP
3
Enrollments: Macro Economics Parthenon models post-secondary enrollments using a number of independent market drivers
Source: Parthenon Analysis
4-Year Not-for-Profit Enrollment Model
Drivers
4-Year Student Age-Weighted
Population
Unemployment & Mean Weeks Unemployed
Trend Towards Higher Education
4-Year For-Profit Enrollment Model
Drivers
Unemployment & Mean Weeks Unemployed
For-Profit Enrollment Trend
Private Sector Real SG&A
(Marketing spend)
2-Year Not-for-Profit Enrollment Model
Drivers
2-Year Student Age-Weighted
Population
Unemployment & Mean Weeks Unemployed
Trend Towards 2-Year Education
2-Year For-Profit Enrollment Model
Drivers
Unemployment & Mean Weeks Unemployed
Share of Enrollment Online
Lower 2 Income Quintile Access to Higher Education
2-Year Undergraduate
Tuition
Not-for-Profit Enrollment For-Profit Enrollment
Private Sector Real SG&A
(Marketing spend)
4-Year Student Age-Weighted
Population
2-Year Student Age-Weighted
Population
THE PARTHENON GROUP
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Enrollments: Macro Economics Enrollment drivers are fairly common across sub-sectors and consider underlying factors and recent trends
• Population weighted by age groups relevant to 2-year, 4-year and post-secondary institutions; more potential students leads to higher enrollments
• Represents the duration for which workers remain unemployed; less confidence in job prospects after prolonged unemployment lowers interest in education
• Unemployed workers traditionally return to school to improve job prospects
Higher Education Enrollment Drivers
Driver Impact Description/Rationale Models
Weighted Population of Student Demographic
4NFP 2NFP
4FP 2FP
Unemployment 4NFP 2NFP
4FP 2FP
Average Weeks of Unemployment
4NFP 2NFP
4FP 2FP
Private Sector Real SG&A • Metric for marketing spend by for-profit institutions; marketing has a positive impact on enrollment in for-profit institutions
4NFP 2NFP
4FP 2FP
Positive Industry Penetration of For-Profit Education
• Increasing trend towards attaining post-secondary education that that impacts for-profits; impact has since started to taper
4NFP 2NFP
4FP 2FP
Share of Enrollment Online • Captures the shift to online learning which benefits enrollment of for-profit institutions, which over-index online
4NFP 2NFP
4FP 2FP
2-Year Undergraduate Tuition • Higher tuition levels discourage enrollment
4NFP 2NFP
4FP 2FP
THE PARTHENON GROUP
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Enrollments: Traditional Sector Competing Strong traditional brands are now targeting the same students as the for-profit sector
0
20
40
60
80
100%
AllUniversities
ProgramsOfferedOnline/Hybrid
Tier-IUniversities
ProgramsOfferedOnline/Hybrid
ProgramsNot Offered
Online
Programs NotOffered Online
0
20
40
60
80
100%
Institutions' Online/Hybrid Status
Not Online/HybridOfferings
OfferOnline Courses(But No Online
Programs)
Online/ HybridDegree Program
3.6K
Percent of Completions Where Online/Hybrid Programs are
Offered in Program Area, 2011
Public and Not-for-Profit Institutions, Percent Offering
Online/Hybrid, 2011
Note: “Traditional Institutions” excludes private sector institutions; Fully online programs denote programs in which there are zero on-campus course requirements for completion; Hybrid program requirements vary but hybrid programs typically have greater than 60% of coursework offered online; Academic Professionals include Chief Academic Professionals such as Deans or Provosts Source: Peterson’s Distance Learning Database;; IPEDS;; Deutsche Bank;; School Websites;; Barron’s Ranking of Post-Secondary Schools
Babson Group’s Annual Survey: Going the Distance:
Online Education in the United States, 2011:
• 65% of institutions said
online learning is, “a critical part of their long-term strategy”
• 67% of academic professionals rated online education courses as the same or superior to face-to-face instruction
• 70% of academic professionals believe students are as satisfied with online courses as they are with face-to-face
THE PARTHENON GROUP
6
0
2
4
6K
0.3K
2012
PurelyOnline
5.5K
107%
2008
('08-'12)CAGR
$115MEst. Revenue
0
20
40
60
80
100K
2008
27.6K
2012
PurelyOnline
82.6K
32%
('08-'12)CAGR
$523MEst. Revenue
Southern New Hampshire University Enrollment
University of Southern California Enrollment
Enrollments: Traditional Sector Competing Traditional institutions are coming online and when they act commercially, they tend to thrive…
Arizona State University Enrollment
Liberty University Enrollment
0
4
8
12K
2007
2.7K
2012
Purely Online
20.0K
49%
('07-'12)CAGR
$106MEst. Revenue
0
2
4
6
8K
2010
2.5K
2012
Purely Online
6.5K
61%
('10-'12)CAGR
$46MEst. Revenue
Source: University financial statements, university websites, Fast Company, Deutsche Bank Report, NYT, Parthenon analysis
THE PARTHENON GROUP
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Enrollments: Traditional Sector Competing …their brands are powerful…
0.0
1.0
2.0
3.0
4.0
6/20
07
6/20
08
6/20
09
6/20
10
6/20
11
6/20
12
6/20
13
Not for Profit
For Profit
Index of Google Searches for Top For-Profit and Not-For-Profit Institutions, 2007-2014
Note: For profit index consists of “University of Phoenix”, “Ashford University”, and “Kaplan University”;; Not for profit index consists of “Liberty Online University”, “Western Governors University”, and “SNHU”. Indices are indexed to one for the beginning period and represent a rolling 6-week average. Source: Google Trends
(Liberty, WGU, SNHU)
(U of P, Ashford, Kaplan)
THE PARTHENON GROUP
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Company Select Partners
Enrollments: Traditional Sector Competing ...and they often partner with third party online enablers
THE PARTHENON GROUP
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Regulatory Issues While all regulatory issues require monitoring, Gainful Employment (GE) is the primary current issue
Higher Education Act
Gainful Employment (as proposed) Cohort Default Rate 90/10 Revenue
Percentage Accreditation
Reform Title IV
Safe Harbors
Regulatory Status
• HEA is reauthorized every few years by Congress, and is set to expire this year
• Unlikely to be acted on until after the November midterm elections
• Limitations (repayment rates >45% and/or debt burdens <8% of total income) struck down in 2012
• DoE released new draft in Dec. 2013; final draft to be released in March before public comment period
• Three-year CDRs will be enforced starting in 2014
• Schools with a three-year CDR >30% for three years will face sanctions; the 40% one-year threshold was unchanged
• No pending changes
• VA benefits are included in the 10% – possibly up for debate
• Possibility of just including Title IV eligible students in calculations
• Under Sen. Lee’s (R-Utah) proposal, states could opt to set up their own accreditation organizations
• New York already follows this model
• Obama endorses tying performance metrics to fed aid
• DOE eliminated 12 “safe harbors” in 2010
• For-Profits attempting to have several of those safe harbors restored
• Action unlikely in 2014
Commentary
• “I highly doubt congress will deal with this in 2014, even though it is set to expire. They’ll wait for after the elections and probably just keep things the same” – Senior VP, Inifilaw
• “They came back with round 2 and came back that they want stricter rules because of the language they got. This won’t be good at all for the for-profits” – Principal, Ritzert Leyton
• “They are easy to manipulate, our overall takeaway is don’t be that concerned, only the bad schools and programs will be affected” – Senior VP, EDMC
• “The for-profit graduate schools have a large number of students who don’t take Title IV funding, so they’re not really at risk here” – Former Federal Regulatory Affairs Manager, Kaplan
• “I don’t think anything will happen here until 2015, probably 2016 at the earliest” – Veterans of Foreign Wars of The United States, Legislative Associate
“I don’t see any change here in the near future. They can’t enforce them anyway” – Former Higher Ed Legal and Regulatory Consultant, Apollo Group
Threat to For-Profits
Source: DOE, PBS, US News and World Report, Inside HigherEd, FinAid, Parthenon Interviews
High Low
THE PARTHENON GROUP
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Regulatory Issues The current draft of GE regulations place aggressive thresholds on debt-to-earnings and cohort default rates
Metrics Annual Debt-to-Earnings (aDTE) Discretionary Debt-to-Earnings (dDTE)
Program Cohort Default Rate (CDR)
Population Measured Completers Completers & Non-Completers
Categories and Thresholds Pass: Annual DTE≤8% OR Discretionary DTE≤20% Zone: • 8%<Annual DTE≤12% OR • 20%< Discretionary DTE≤30% Fail: Annual DTE>12% AND Discretionary DTE>30% Note: 10-Year Amortization Period
Pass: Program CDR<30% Fail: Program CDR≥30%
Ineligibility Rules (metrics operate independently of each other)
A program becomes Title IV ineligible for 3 years if:
• It fails in any 2 out of 3 years, OR
• Does not pass in any 1 out of 4 years (time for zone programs to improve before ineligibility)
A program becomes Title IV ineligible for 3 years if:
• The 3-year default rate of 3 consecutive cohorts of students is greater than or equal to 30%
Restrictions • Written warnings to students if a program could become ineligible for Title IV funds for the next award year (applies to zone & failing programs)
• Title IV enrollment limited to previous year’s level for failing programs (or after third year of being in zone)
• Written warnings to students if a program could become ineligible for Title IV funds for the next award year
• Title IV enrollment limited to previous year’s level if program could become ineligible at the end of the year
Source: DoE
Must Pass One Metric from Each Column to Pass GE
THE PARTHENON GROUP
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Reasserting Growth How does the sector get back on a growth trajectory?
Persistence, Persistence, Persistence 1
Focus on the Adult Learner 2
Consolidate and Drive Efficiencies 3
Redeploy Capital 4
Look Towards Services Markets 5
THE PARTHENON GROUP
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0
20
40
60
80
100%
Reasserting Growth: Persistence, Persistence, Persistence Overall outcomes (for-profit, non-profit, public) are disappointing and persistence has compelling economics
Sources: IPEDS
0
20
40
60
80
100%80%+
50%-79%
20%-49%
Less than 20%
3,898
Percent of Institutions with Given Graduation Rate
Lifetime Cohort Revenue
Per
cent
of L
ifetim
e R
even
ue
Percent of Starters
Attract More
Increase the persistence and graduation rate
Should we start them?
THE PARTHENON GROUP
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Reasserting Growth: Focus on the Adult Learner Distinct student groups with different sets of needs can be reached through innovative course offerings
Onl
ine
Offe
rings
“Traditional” Students Career Enhancers Self-Directed Learners
Online/hybrid courses for campus-based first-time
full-time students
Fully-online and competency-based
degree programs for adults looking to enhance
their employment prospects
Open-Access Options (MOOCs, OER, OCW, etc.)
for a wide age range of students seeking to
accelerate credit accumulation at a
very low cost
Requ
irem
ents
for
Succ
ess
• Tight coordination with onsite courses
• Supplemental student supports to drive student engagement
• Continuous starts, competency options
• Close alignment with labor market needs
• Quality evaluation frameworks and testing policies to allow for awarding of credits
THE PARTHENON GROUP
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Reasserting Growth: Focus on the Adult Learner Pushing innovation in competency-based programs while leveraging channel partners can combat traditional brands
Why a Competency Orientation? Why Channel Partners?
• Supports students desire for a practical employment focused education
• Aligns with employer needs while still providing the “certification” of a degree
• Can support a lower cost structure
• Leverages the channel partners brand
• Long term better student acquisition model
• Keeps institution attuned to shifting employer needs and forces a responsive curriculum and pedagogy
THE PARTHENON GROUP
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Reasserting Growth: Consolidate and Drive Efficiencies The market is highly fragmented, utilization is low, and business processes are becoming more crucial
Program Design Inquiry Admission Fin Aid Onboarding
Instruction & Student Support
Exit Processes
Accounts Receivable Collection
THE PARTHENON GROUP
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Reasserting Growth: Redeploy Capital Global education markets are fueled, primarily, by rising household wealth…
Threshold For Private Schooling
90’s 00’s 10’s
Per
cent
of H
ouse
hold
s
Household Income
Households which can afford higher quality education (primary, secondary, or tertiary) for their children
Distribution of Household Income
The relationship between household income and attainment of higher quality education (private schooling) is not a 1:1. Instead, as HH income rises over time, the number of families that are able to send their children to private schools increases in a greater proportion than household income
As average household income rises, the number of households above the private education affordability threshold rises more quickly
THE PARTHENON GROUP
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Redeploy Capital Wherever income is rising, so too is the demand for post-secondary education
100%
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PPP adjusted GNI per Capita
$0 $20,000 $40,000 $60,000
Enro
llmen
t Rat
io
0%
20%
40%
60%
80%
Tertiary Gross Enrolment Ratio (GER) vs. Income, 1999 and 2007 (80 countries from around the world)
Note: UNESCO’s Gross Enrolment ratio ISCED 5 and 6. This ratio is calculated using the number of pupils enrolled in International Standard Classification of Education (ISCED) level 5 and 6 representing stages of tertiary education, regardless of age, expressed as a percentage of the population in the five-year age group following on from the secondary school leaving age Source: BMO Capital Report (2009); UNESCO; World Bank
THE PARTHENON GROUP
18
Reasserting Growth: Look Towards Services Markets Higher education institutions are increasingly embracing business processes
Note: *Aramark was founded in 1936 and AVI Food Systems in 1961 but it is not known when they started servicing universities **Bisk was founded in 1971 as a test prep company but did not enter online program development until 1998
Spectrum of University Functions That Have Been Managed by Vendors (Representative, not Comprehensive)
Document & Data Storage
Finance & Accounting
Human Resources
Financial Aid & Student
Loans
Information Systems
Management Dormitories
Food Service
IT Support Institutional & Operational Support Enrollment Management Academics
Online Platform
Instruction
Course Development
Back End Front End Academic Core
Exam
ple
Vend
ors
• XACT Telesolutions (1976)
• Infosys (1981)
• Affiliated Computer Systems (1988)
• Sallie Mae (1972)
• Nelnet (1977)
• Royall & Co (1989)
• ESM (1995) • QuinStreet
(1999)
• InsideTrack (2001)
• Embanet-Compass (1995)
• Deltak (1996) • Bisk (1998*) • Learning House (2001) • Academic Partnerships
(2007) • 2Tor (2008)
• Educational Housing Services (1987)
• Aramark*
• AVI Food Systems*
1970s-80s 1990s-Today Inception of Outsourcing:
?
Uni
vers
ity F
unct
ions
Marketing & Recruitment
Student Coaching
Market Penetration of Outsourcing:
THE PARTHENON GROUP
19
Reasserting Growth: Look Towards Services Markets There is significant institutional spending in areas that could benefit from partnerships
Source: Parthenon analysis
Back End Front End
0
20
40
60
80
100%
IT Support
Currently Partner-Supplied
$15B
Finance andAccounting
$7B
HR
$3B $2B $2B
Admissions
$11B
Development andAlumni Affairs
$6B
Financial Aid and Student LoansEndowment Management
$1B
Marketing and Recruitment
Total = $47B
Institutional Support Student Services
Relevant Categories of Post-Secondary Institutional Expenditure
THE PARTHENON GROUP
20
What Informs Our Perspective? Parthenon teams have completed over 900 education projects in more than 60 countries
Pre-Kindergarten K-12 University Vocational and Other
Career and Professional
Education Sector Projects Completed by Parthenon
Parthenon Offices
THE PARTHENON GROUP
21
What Informs Our Perspective? Public and private sector work provides a strong sense of what is happening “on the front lines”
We advise leading education institutions…
• Federal, state, and local educational authorities
• Charter schools, private K-12 schools, and other innovative education providers
• Global post-secondary institutions
• Foundations on the forefront of education reform
…work with the organizations that help meet their needs…
• Educational publishing
• Testing and assessments
• Tutoring
• Intervention
• Special Education
• Technology providers
• Consumer education products
…and cover almost every large and mid-sized
transaction in global markets
• North America
• Latin America
• Europe
• Gulf Cooperative Countries
• Africa
• Asia, Southeast Asia, and Asia-Pacific
THE PARTHENON GROUP
22
About The Parthenon Group and our advisory services for investing in education
About The Parthenon Group
The Parthenon Group is a leading advisory firm focused on strategy consulting, with offices in Boston, London, Mumbai, San Francisco, and Shanghai. Since its inception in 1991, the firm has embraced a unique approach to strategic advisory services built on long-term client relationships, a willingness to share risk, an entrepreneurial spirit, and customized insights. This unique approach has established the firm as the strategic advisor of choice for CEOs and business leaders of Global 1000 corporations, high-potential growth companies, private equity firms, educational institutions, and healthcare organizations. The Parthenon Group advises clients in all stages of investing in education companies, including target identification and screening, strategic due diligence, portfolio company strategy and operational improvement, and sell-side support. The combination of Parthenon’s Private Equity Practice, which has advised clients on more than 1,000 transactions, and our Education Practice, which has worked across all aspects of for-profit and non-profit education, make The Parthenon Group the preeminent advisor to private equity firms considering investments in the education industry. Learn more about us at www.parthenon.com.
Robert Lytle Partner, Co-Head of Education Practice [email protected] 617.478.7096 Executive Assistant: Deb Spitzley [email protected] 617.478.6312
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Advisory Services for Investing in Education
Twitter | @Robert_S_Lytle