Exeo capital, an African alternative investment firm, has acquired the Pearson Institute of Higher Education. The acquisition, a joint initiative between EXEO Capital and Stellenbosch Graduate Institution, is set to widen availability and access to higher education in Africa, particularly South Africa.
Person Institute Of Higher Education operates across 12 separate campuses in South Africa covering over 7000 students.
The institute of higher learning was formed through the union of CTI Education Group and Midrand Graduate Institution in 2010. The institution offers academic and career-oriented learning programs.
The investment aims to scale the operation of Pearson Institute within South Africa as well as expand into the pan African market.
The demand for higher education remains high given the rising population and increasing middle class in Africa. The investment firm projects that the business of education in Africa is anticipated to quadruple in the next ten years. They are of the view that platforms equipped to meet the rising demand for education with the right partners can produce a quality deliverable in education that has the potential to scale profitability.
The transaction is in keeping with EXEO’s strategic objective of investing in selected growth sectors and building out companies that can deliver on financial return expectations, while at the same time addressing pressing development needs in South Africa and wider Africa. Herman Marais, EXEO Managing Partner.
Private education plays a crucial role in meeting the demand for quality education and reducing the demand on stretched public sector resources.
EXEO’s Africa-wide network will help us to accelerate our and PIHE’s ability to support the development of professionals and knowledge-workers in Africa with globally equivalent skills. Frik Landman, Stellenbosch Graduate Institute CEO
The investment also carries a social impact as it not only meets the increasing demand for quality education but also enables human capital development.
The acquisition comes at a time when Africa is ripe for education-focused investment. The continent’s growing population presents a growing demand for education. Additionally, coupled with growing technological advancements that effectively reduce barriers across borders, there is an urgent and growing demand for improved quality education that meets international standards.