The Strategic Power of Investment in International Education: A Case Study of Nord Anglia Education

Proof of the Strategic Power of Investment in International Education is an Exploration Nord Anglia Education

In a world that increasingly values international education, the rise of Nord Anglia Education (Nord Anglia) exemplifies how strategic investment in international education can deliver impressive returns. Nord Anglia’s journey from a small UK-based firm to a global education powerhouse, combined with its recent $14.5 billion acquisition deal, underscores the vast potential that education-focused investments hold. This article explores how well-planned investment, supported by strong leadership and strategic partnerships, can drive extraordinary growth in the education sector.

(Image source – Nord Anglia Website)

International Education: A Booming Investment Opportunity

The global market for premium international education continues to expand, driven by rising middle-class wealth, demand for high-quality education in emerging markets, and the mobility of expatriate families. International schools have become increasingly popular, offering students access to globally recognized curricula such as the English National Curriculum and International Baccalaureate (IB).

Investors are taking note of these trends. The recent $14.5 billion acquisition of Nord Anglia Education by a consortium led by EQT AB, Neuberger Berman Private Markets, and the Canada Pension Plan Investment Board (CPPIB) showcases how international education has become a lucrative market for private equity investment. The strategic moves by Nord Anglia, backed by its investors, highlight the immense growth potential within the sector. (Source)

Nord Anglia’s Early Expansion: The Foundation for Growth

Founded in 1972 by Kevin McNeany, Nord Anglia Education began as a modest UK-based education services provider, offering teacher training and language programs. The company pivoted in the 1990s to focus on owning and operating international schools. This shift marked the start of its transformation into a global player, as it began to offer premium educational services to expatriate families and local communities alike.

The company’s early decision to adopt the English National Curriculum and IB was pivotal. It allowed Nord Anglia to build a reputation for academic rigor, positioning itself as a premium education provider for families seeking consistent, high-quality schooling across international borders.

Strategic Private Equity Involvement: A Catalyst for Growth

Nord Anglia’s real growth story began in 2008, when Swedish investment firm EQT, in partnership with Baring Private Equity Asia (BPEA), made its first investment in the company. This initial investment provided the financial backing Nord Anglia needed to aggressively expand its portfolio of schools. By 2012, Nord Anglia was managing schools across Europe, the Middle East, and Asia, establishing itself as a leading global provider of international education.

The next major financial milestone came in 2014 when Nord Anglia went public on the New York Stock Exchange (NYSE), raising $304 million. The IPO demonstrated the market’s belief in Nord Anglia’s growth potential. However, just three years later, EQT and CPPIB took the company private again in a $4.3 billion deal, allowing Nord Anglia to make swift decisions without the constraints of public market oversight. (Source)

The $14.5 Billion Acquisition Deal (2024): A Testament to Value Creation

The 2024 acquisition of Nord Anglia Education, valued at $14.5 billion, including debt, is a prime example of how private equity can drive long-term value creation in the education sector. The deal, led by EQT AB alongside Neuberger Berman Private Markets and CPPIB, involved the purchase of a majority stake in the company, with the equity portion valued at approximately $10 billion.

This transaction reflects the confidence that investors have in the international education market and Nord Anglia’s ability to capitalize on growing demand. EQT’s ongoing investment in Nord Anglia, through its BPEA Private Equity Fund VIII, is a continuation of its long-term strategy. CPPIB, which held a stake in NAE before the acquisition, reinvested a portion to support the deal, while Neuberger Berman and other institutional investors joined as new stakeholders.

Caitlin Gubbels, Senior Managing Director at CPPIB, emphasized the potential for growth in the sector, noting that the deal would deliver “attractive returns” while enabling Nord Anglia to continue expanding its operations globally. (Source)

Nord Anglia’s Strategic Global Footprint for Investment in International Education

Today, Nord Anglia operates over 80+ schools in 33 countries, educating more than 85,000+ students. Its curriculum blends the English National Curriculum, the IB, and global best practices, appealing to a broad spectrum of expatriate families and local communities seeking a premium education experience.

Nord Anglia’s strategic partnerships with prestigious institutions such as MIT, The Juilliard School, and UNICEF further distinguish its offering. These partnerships allow Nord Anglia to provide unique educational experiences that integrate cutting-edge learning in STEAM (Science, Technology, Engineering, Arts, and Mathematics) and performing arts, equipping students with skills needed in a rapidly changing world.

Parallel Growth with IMG Academy: Expanding Investment in International Education

EQT’s strategy in education goes beyond Nord Anglia. In 2023, BPEA EQT also acquired IMG Academy, a sports-focused education leader based in Florida, for $1.25 billion. Like Nord Anglia, IMG Academy offers specialized, premium education, but with a focus on student-athletes. Serving over 100,000 students annually and placing 30,000 students on college sports rosters in 2022 alone, IMG Academy exemplifies the growth potential within specialized education markets.

With Asia being IMG Academy’s largest source of international students, EQT plans to leverage its success with Nord Anglia to support IMG’s expansion in key Asian markets, including Singapore, India, Vietnam, and Greater China. This parallel growth strategy demonstrates how private equity can drive expansion across various segments of the education market, using a proven model of investment and strategic leadership. (Source)

Why International Education is a Prime Investment

The rise of Nord Anglia Education reflects the broader trends that make international education an attractive investment:

1. Global Demand: The demand for high-quality education that prepares students for the global stage continues to grow, particularly in emerging markets.
2. Premium Pricing: International schools can charge premium fees due to the high quality of education, specialized curriculums, and unique student experiences, delivering significant revenue potential.
3. Scalability: Premium education brands can be scaled across different markets, replicating successful models in new regions. This scalability creates opportunities for geographic expansion, a key driver of value creation.
4. Innovation: Education is evolving, with technology playing an increasing role in delivering personalized learning experiences. Schools that can innovate in this space, like Nord Anglia and IMG Academy, are better positioned to attract investment.
5. Partnerships: Strategic partnerships, like Nord Anglia’s collaborations with MIT and Juilliard, add significant value by offering differentiated programs that enhance student outcomes and further strengthen the brand.

A Model for Strategic International Education Investment

Nord Anglia Education’s rise to a $14.5 billion global leader in international education exemplifies the power of strategic investment when aligned with a clear vision for growth. With strong backing from EQT, CPPIB, and other institutional investors, Nord Anglia has built a global network of premium schools that serve tens of thousands of students across multiple continents.

For investors, the education sector presents an opportunity to tap into a market that is growing globally and shows no signs of slowing down. The success of Nord Anglia serves as a blueprint for how thoughtful investment, backed by expert leadership and a scalable model, can generate substantial returns while contributing to the global demand for high-quality education.

Investment in education is more than a financial opportunity—it is an investment in the future.

GSE’s current strategic priorities include an expansion in the following key areas of investment in international education:

1. An expansion across the MENA region centred primarily around the Kingdom of Saudi Arabia and current projects focused on 12 schools and 2 University locations.
2. An expansion across Europe, primarily focussed on 10 sites in Italy and France, with a focus on redeveloping heritage-style buildings into premium international boarding schools.
3. A strategic expansion across Africa with a focus on schools that meet the needs of a rising middle class and value proposition education institutions.
4. Continuing a focus on Asia with a key focus on markets such as Vietnam, India, Korea, Japan and Malaysia, but not limited to other opportunities across South East Asia.
5. Exploring Eastern Europe, including Central Asia, as an emerging market for Tier 2 sector schools.

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If you want to learn more about the steps required to set up a school check out some of our other articles:

– Steps to Setting Up a New School

– 10 Steps and Articles on How to Set Up a New School

– GSE International School Franchise Models

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CEO and Education Expert Greg Parry

Internationally renowned for his expertise in education leadership, Greg Parry’s vast experience includes leadership of projects for education institutions throughout Australia, the Middle East, the United States, India, Indonesia, Malaysia and China. Recognised for his numerous contributions in the education arena, Greg has received the Minister’s Award for Excellence in School Leadership based on improvements in school performance and a range of successful principal training and leadership development programs, as well as the School of Excellence Award for Industry/School Partnerships and the School of Excellence Award for Technology Innovation. His company GSE (Global Services in Education) has been recognised as having the Best Global Brand in International Education in 2015 and 2016.

Considered one of the premier experts in his profession, Greg has trained teachers and principals worldwide in critical thinking, language development, and leadership. His expertise in school start-up projects, leadership, and curriculum development has made him a sought-after authority in these disciplines.

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Global Services in Education establishes and operates schools worldwide. Guided by a philosophy of global citizenship, every member of the GSE team shares a passion for inspiring and collaborating to shape international education and student achievement.
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