March 14, 2003

For-Profit Colleges Attract a Gold Rush of Investors

By GOLDIE BLUMENSTYK

Private-equity funds pour millions into the industry, with some endowments joining in

With most of the economy in the dumps, private-equity funds that search beyond the stock market for places to invest are putting their cash into one of the few business sectors they can rely on to grow: for-profit education.

Drawn by the visibility and predictability of for-profit colleges' earnings, and mindful of the rising stock prices of publicly traded postsecondary-education companies like

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