Private equity (PE) is making significant inroads into the global education sector, with a notable increase in deal activity. In the first half of 2026, global education deals reached 514 transactions, marking a 77% increase from 291 deals recorded in the same period a year prior. This resurgence follows a low in 2023-2024, when deal values compressed to $4.6 billion from a peak of $27.4 billion in 2021, illustrating the sector's sensitivity to interest rates but also its consistent demand.
Investors are drawn to education assets like schools and tutoring businesses due to their recurring revenue, often collected upfront or term by term, strong pricing power—as parents prioritize education spending even during economic downturns—and structural growth, particularly from urbanization in emerging markets. This trend is evident in deals such as CVC Capital Partners' 20% stake in International Schools Partnership, valued at €7 billion, more than tripling its previous valuation. Oakley Capital has also pursued this thesis with investments in Schülerhilfe, a German tutoring market leader, and the Inspired school group.
Asia is a particularly active region, with private investment pouring into schools. Excluding China, firms closed $6.4 billion in education deals in Asia-Pacific last year, a 25% increase from the year prior and more than double the volume from six years ago. Major players like KKR and Apollo Global Management are actively investing in school chains, betting on the growing demand for quality education from upwardly mobile families. Apollo, for instance, first invested in Global Schools Group in 2021 and upsized its commitment in 2023, helping the group expand significantly across Asia. EQT also reinvested in Nord Anglia Education after returning $5.4 billion to investors. Private credit is also fueling this growth, with XCL Education securing a $400 million private credit loan and Vietnamese conglomerate Vingroup seeking a $300 million loan for its education subsidiary, Vinschool.
In the UK, higher education is attracting considerable attention. Galileo Global Education, Europe's largest for-profit higher education group, acquired Regent's University London in 2020. Global University Systems (GUS) has also made acquisitions, including the University of Law. These private institutions often charge higher fees, with Regent's University London charging $24,500 annually, more than double domestic non-private university fees. Despite potential reputational risks, the sector offers attractive returns due to the perceived value of premium private education with best-in-class infrastructure and international curricula.
