August 3, 2007

Private-Equity Juggernaut Rolls Through Higher Education

With billions to invest, funds are buying colleges and the companies that sell services to them

By Goldie Blumenstyk

The deluge of money that private-equity investors have been pouring into buyouts of companies in all sectors of the economy is having a growing impact on higher education.

Until recently, outside investors were primarily interested in the for-profit college industry, acquiring family-owned colleges and chains of colleges.

Now several of those investors are putting their billions into companies that sell services to students and colleges, from admissions-marketing firms to the