Educate All Students: Larry Miller's Blog

December 4, 2012

Vulture Capitalism Coming to a School District Near You

Filed under: Corporate Domination,Privatization — millerlf @ 9:01 pm

Following is an ad for for-profit companies to attend a seminar on ways to make lucrative investments with companies making profits from public school money.

The seminar is chaired by Harold Levy, who was Chancellor  of New York City’s public schools. “So 2013, and beyond, will see numerous for-profit companies making inroads into public and non-profit education by taking over large swaths of the market.” 

Conference provided by: http://capitalroundtable.com/ – January 15, 2013.

Private Equity Investing in For-Profit Education Companies

How Breakdowns in Traditional Models & Applications of New Technologies Are Driving Change

http://capitalroundtable.com/masterclass/For-Profit-Education-Conference.html

CHAIRED BY: Harold Levy, Managing Director
Palm Ventures
 

20 Expert Speakers, including –

David F. Bainbridge, Veronis Suhler Stevenson LLC
Michael P. McQueeney, Summer Street Capital Partners LLC
Jason Palmer, Straighterline
Ralph Protsik, BSG Team Ventures
Robert T. Puopolo, Epic Partners
Joshua N. Schwartz, East Wind Advisors LLC
David L. Warnock, Camden Partners Holdings LLC

Private equity investing in for-profit education is soaring, and for good reason — the public and non-profit models are profoundly broken.

This is why for-profit education is one of the largest U.S. investment markets, currently topping $1.3 trillion in value.

Look at the current state of K-12 public education.  School districts across the U.S. are underfunded, underperforming, and well behind the curve when it comes to adopting quality technologies.

Many simply lack the expertise to treat today’s applied technologies as not just gadgets or strategic opportunities, but as real solutions for expanding their capacity to teach students.

And in the post-secondary world, non-profit institutions are finding that very few enticements are bringing in money.  Not sports.  Not research.  Not classrooms.

Public funding and private endowments are both down, and neither will be particularly reliable in the future.

So 2013, and beyond, will see numerous for-profit companies making inroads into public and non-profit education by taking over large swaths of the market.  What’s more, they’ll prosper in the corporate training and continuing education marketplace as well.

Consider —

  • The entire education sector now represents nearly 9 percent of the U.S. GDP.
  • Merger and acquisition activity in for-profit education last year surpassed activity at the peak of the Internet boom.
  • More and more non-profit colleges are hitting the wall and seeking investors to help them transform into for-profit institutions.

 

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