For-Profit Colleges Attract a Gold Rush of Investors

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

By GOLDIE BLUMENSTYK

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...

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