A consortium led by Brookfield Asset Management has agreed to invest in GEMS Education, a Dubai-based international education provider. The investment will see private equity firm CVC Capital partners exit its stake in GEMS, five years after acquiring a 30 per cent holding in the company. The size of the investment has not been disclosed, but the transaction is expected to be completed in the third quarter of 2024, subject to conditions.
The consortium investing in GEMS Education includes Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan (SOFAZ). GEMS Education also announced that it has secured financing from a consortium of UAE banks to fund the repayment of its existing financial arrangements. The company, which started as a single school in 1959, now educates 140,000 students and expanded its presence through a joint venture in Saudi Arabia in 2019, acquiring Ma’arif, the kingdom’s largest education company.
This strategic investment by Brookfield Asset Management and its partners underscores the confidence in GEMS Education’s growth potential and the quality of its educational offerings. The partnership with reputable investors is expected to bring additional resources and expertise to support GEMS Education’s expansion plans and enhance its position in the global education sector.
This investment comes at a time when the education sector is undergoing significant transformation due to the impact of the COVID-19 pandemic and the shift towards online learning. GEMS Education has been at the forefront of adapting to these changing dynamics and leveraging technology to provide high-quality education to its students.
With the support of Brookfield Asset Management and the consortium of investors, GEMS Education is well-positioned to navigate the challenges and opportunities in the education sector, and continue to deliver innovative and sustainable educational solutions to its students. The partnership is expected to drive GEMS Education’s growth and enable it to further expand its reach and impact in the global education market.
Overall, this investment is a testament to the strong reputation and track record of GEMS Education as a leading international education provider. With a solid foundation and a commitment to excellence, GEMS Education is poised for continued success and growth in the years to come, supported by the resources and expertise of its new investment partners.
