CHICAGOINNO: Chicago-Based Sterling Partners Just Launched a $200 Million Education Fund

Career College Central Summary:

Chicago-based Sterling Partners announced the $200 million Education Opportunity Fund, its first-ever sector specific fund. It is partnering with USA Funds, a nonprofit that focuses on streamlining student pathways to college, on the venture. The private equity firm hopes to invest in "growth-stage, purpose-driven companies" that further opportunities for students, create new revenue streams, and create more efficient business models for academic institutions.
The fund will likely be focused on higher education, said Shoshana Vernick, managing director of the Education Opportunity Fund.
"There is a tremendous amount of pressure placed on institutions of higher learning through a lack of ability to raise revenue, meaning tuition, much more," she said."We see a unique opportunity to partner with [universities], and find… opportunities to run their business more efficiently."
However, Jason Rosenberg, another managing director of the fund, added that any company that is thoughtful about their impact and product will be considered.
"What's important to us is that that company has a real mission, a real purpose, acts with integrity– all those things we aspire to do as investors," he added.
Sterling Partners estimates it will invest $10 million to $25 million in equity capital on average per company through the fund.
The 30-year-old private equity firm has a long history of successful education investments. The firm is behind the success of Sylvan Learning Centers, the national chain of tutoring centers, as well as Laureate, a massive chain of for-profit international colleges. Here in Chicago, they helped scale the for-profit, accredited digital arts school Tribeca Flashpoint College.
With that previous success, the private equity firm decided to stick with what works.

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