The Education Investor: First Quarter 2003

Authors: Outsell Client Services, Client Services; Eduventures, Inc.

Private investment in education businesses experienced its second consecutive quarterly increase in the first quarter of 2003, growing 27 percent to reach $50.9 million. This increase is an encouraging trend for the industry as it continues to rebound from the record quarterly lows during the third quarter of 2002. However, investment activity continued to be concentrated among just a handful of investments.

At the same time, announced merger and acquisitions reached the 25-transaction level, making for yet another especially active quarter on the M&A front. Among the transactions, there was a particular concentration of consolidation activity within the for-profit postsecondary institution segment. M&A deals outnumbered investments by a 4-to-1 ratio, similar to the third quarter of 2002.

This quarterly installment of The Education Investor offers a snapshot of first quarter private investment and M&A activity within the education industry.