Dive Brief:
- Laureate Education, the largest U.S.-based for-profit college network with an international presence, has announced it will again become a publicly-traded company with its first IPO since going private in 2007.
- EdSurge reports the company will also become a public benefit corporation, meaning it will legally be able to focus its efforts in areas that may not increase profits, like helping international students overcome barriers to higher ed.
- According to 24/7 Wall St., the public offering is valued for up to $100 million, most of which will pay outstanding debt and fund general corporate operations.
Dive Insight:
Laureate Education went under private control in 2007 after a $3.8 billion offer from an investor group led by CEO Douglas L. Becker. At the time, the move was expected to give Laureate more freedom to expand as Wall Street was heading into a risk-averse period. Now, Laureate is coming off of six years of consistent compound annual growth rates of 12.2% in revenue and enrollment. The company expects continued growth internationally as it markets to the emerging middle class around the globe.
Until earlier this year, former President Bill Clinton served as an honorary chancellor for the for-profit. His exit was said not to be related to Hillary Clinton's presidential campaign, despite her scrutiny of for-profit colleges. The move to benefit corporation status may be an attempt to improve its public perception given the space's reputation among that space. It's an increasingly common move among for-profits overall.
