In recent years, education has quietly evolved from a traditionally philanthropic sector into one of the most dynamic investment frontiers for private equity. In 2025, it’s no longer just about impact. Education has become a compelling asset class offering strong returns, long-term stability, and global scalability. Education investment trends are driving change.
A Sector Ripe for Private Equity Investment
Education is a $7 trillion global industry and it’s still growing. While other sectors fluctuate with economic cycles, education often displays resilience. Families continue to prioritise it, and governments remain committed to expanding access and quality. Investors are now recognising that education isn’t just recession-resistant.
It’s future-proof!
In 2025, private equity firms are pivoting towards education for five key reasons:
- Strong demand fundamentals
Global student numbers are projected to hit 2.7 billion by 2035. The demand for premium private schools, international curricula, and bilingual programs is rising fast, particularly in Asia, the Middle East, and Africa. - Predictable cash flows
Schools generate recurring, tuition-based revenue, often collected upfront. This creates a steady income stream and lowers the volatility typically associated with consumer sectors. - Asset-backed investments
Many private school models are underpinned by valuable real estate, creating hybrid returns: operational profit and asset appreciation. - Market fragmentation
Most education markets are still dominated by independent operators. This presents clear M&A opportunities for consolidation, brand creation, and operational optimisation. - Regulatory barriers = moat*
Entry into education is often complex due to licensing, accreditation, and curriculum standards, yet this complexity creates defensible barriers that protect well-positioned investments.
Five Trends Private Equity Firms Must Watch in 2025
As the market matures, investors must stay ahead of the curve. There are some education investment trends to follow.
Here are the top five education investment trends we’re tracking in 2025:
1. K-12 Goes Global
International schools, once concentrated in capital cities, are now expanding into tier-2 and tier-3 cities. Local families with rising incomes are demanding globally recognised education closer to home. Expect to see growth in bilingual schools, American/IB curricula, and franchise-style models across secondary cities.
2. Specialist Academies Are Booming
Niche education models, such as sports academies, STEM-focused schools, and arts-based institutions, are attracting both enrolment and investment. These models command higher tuition and attract mission-driven partners. They’re particularly attractive to private equity seeking premium positioning.
3. EdTech Is No Longer Just a Startup Game
EdTech firms have matured beyond experimental apps. Investors are now backing platforms that integrate with traditional schools to personalise learning, enhance assessment, and reduce operational overheads. The hybrid model of “clicks + bricks” is here to stay.
4. ESG and Impact Investment Alignment
ESG-focused investors are gravitating to education as a dual-purpose play, delivering measurable social impact while achieving consistent returns. Investors are looking for green-certified schools, inclusion-focused institutions, and outcomes-based education models.
5. Alternative Ownership Structures Are on the Rise
From REIT-style education funds to long-term operator-investor partnerships, deal structures in the sector are becoming increasingly sophisticated. Private equity firms are exploring everything from leaseback models to multi-country education platforms structured through SPVs and regulated investment funds such as SICAVs (Malta) or ICAVs (Ireland).
What Makes a Great Education Investment?
Not all schools or education models are created equal.
In our experience working with global education investors, the best-performing assets share these traits:
- A strong leadership and governance model
- Clear educational outcomes and brand positioning
- Scalable infrastructure and replicable operating systems
- High barriers to entry (location, licensing, or IP)
- Real estate or licensing assets that underpin long-term value
Looking Ahead
Private equity is no longer cautiously tiptoeing around education. It’s moving in decisively. The combination of stable returns, social relevance, and growth potential is too powerful to ignore. Equity is chasing the education investment trends.
As the global landscape continues to evolve, education investments will increasingly become core assets in diversified portfolios. For firms that can balance financial discipline with sector expertise, the opportunities in 2025 and beyond are vast.
About the Author
Greg Parry is CEO of Global Services in Education (GSE), a leading advisory firm helping investors, governments, and education operators establish world-class schools worldwide. GSE Capital Advisory Group advises regulated investment funds focused on education assets.
Want to explore investment opportunities in international education?
Let’s talk. Connect via LinkedIn or visit www.gsineducation.com.
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