By Kevin McCauley
Bertelsmann, owner of Random House and magazine publisher Gruner & Jahr, is putting up $50M to become anchor investor in the $100M University Ventures Fund, which invests in for-profit colleges, vocational schools and emerging educational platforms in the U.S. and Europe.
CEO Thomas Rabe believes the burgeoning education market offers a custom-made opportunity for his company.
“Mega-trends such as the emergence of new digital technologies and the growing role of the private sector open up vast opportunities for us, which we expect to take full advantage of through University Ventures, said Rabe in a statement.
UV, which is run by private equity managers, plans to put money in up to 10 new opportunities during the next five years.
Currently, it has a partnership with Brandman University to provide undergraduate and graduate programs for working adults and plans to establish a college for Hispanic students
In Europe, UV launched Higher Education Online to advise colleges how to put present their course on the Internet.
The Washington Post Co. is a media leader in the for-profit educational market via is Kaplan subsidiary.
Rupert Murdoch’s News Corp. has targeted the sector for development in a push spearheaded by former New York City school chancellor Joel Klein. |