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Education Reform IS Big Business

January 11, 2013

As I have been saying in my many posts, the “reform” movement is mainly interested in ONE thing.  They would like to privatize the public tax dollar income stream that goes to fund public schools.  Privatizing this income stream is worth billions of dollars to them.

As public school teachers, we must recognize this is an assault that is NOT going away.   It is growing because people can be bought, and once people, politicians mainly, are bought and paid for, legislation is created which benefits the person doling out the cash.

If you doubt what I am saying, see this article from the excellent Valerie Strauss at the Washington Post’s Answer Sheet blog:

Did you know that the education sector now represents nearly 9 percent of the country’s gross domestic product? That for-profit education is valued at $1.3 trillion, and is one of the largest U.S. investment markets?

These facts were part of an advertisement for a conference for investors in for-profit education ventures, just one example of how much the profit motive has entered into the public education arena. The conference is one of two examples of how school reform has become little more than a business in some arenas (and just how removed some reformers have gotten from classrooms and the actual dynamic of teaching and learning).

If you had wanted to attend this conference for private equity investing in for-profit education companies, you missed it, (but you did save the walk-in fee of $1,495). Featured at the conference were “20 education experts,” none of whom are actually teachers.


Attention – Middle-Market Private Equity

& Mezzanine Investors & Lenders


Private Equity Investing in
For-Profit Education Companies

How Breakdowns in Traditional Models

& Applications of New Technologies

Are Driving Change




Harold Levy, Managing Director
Palm Ventures



Tuesday, January 15, 2013

8:00 am – 5:00 pm
New York City

Designed to Meet the Needs of GPs, LPs, & Managers of Buyout, Growth Equity, Mezzanine, & Lending Funds, as Well as Independent Sponsors, Operating Partners, Portfolio Company Managers, and the Bankers, Lawyers, Accountants, & Other Advisors Who Support Them


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.


You’ll learn how to achieve investment success in this education revolution when you attend The Capital Roundtable’s ENCORE conference — “Private Equity Investing in For-Profit Education Companies,” being held in New York City on Tuesday, January 15.


Here are 6 important reasons you should attend this conference:


  • Understand which technologies are the engines of change for the entire for-profit education industry.
  • Hear how online services go well beyond coursework solutions to include engagement, assessment, and other critical needs.
  • Realize what new regulations can be expected during the next presidential term.
  • Find out which technologies are poised to take off, such as massive open online courses (MOOCs), adaptive learning platforms, and virtual laboratories.
  • Recognize the growing demand for training tools to assess performance and measure effectiveness.
  • Gain insight on the strongest opportunities to lower costs and improve learning.



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