Apollo and Carlyle look to educate

Apollo Group has committed up to US$801m and will own 80.1% of the joint venture. Carlyle has committed up to US$199m and will own 19.9% of Apollo Global. The new venture will be a consolidated subsidiary of Apollo Group and Greg Cappelli, Apollo Group’s executive vice-president and director will be chairman of the subsidiary.

Brooke B. Coburn, managing director and co-head of Carlyle Venture Partners III, said: “Global demand for higher education is strong. Apollo Group’s operational expertise coupled with Carlyle’s global network make this a powerful partnership.

Apollo Group has been an education provider for more than 30 years, operating the University of Phoenix, the Institute for Professional Development, the College for Financial Planning, Western International University and Insight Schools. The group offers innovative educational programmes and services at high school, college and graduate levels at 259 locations in 40 states and the district of Columbia, Puerto Rico, Alberta and British Columbia, Canada, Mexico and the Netherlands, as well as online throughout the world.

Brian Mueller, president and director of Apollo Group, said: “We will continue to invest capital in our high return core domestic business, and through Apollo Global, we will also explore strategic and value-creating global acquisition opportunities. Importantly, we reiterate that any investment must meet our disciplined investment criteria as we remain committed to creating long-term value for our shareholders.”