Oakley Capital Investments Limited (OCI) announced that the Oakley Capital Fund III has reached an agreement to realise its stake in IU Group, the largest and fastest-growing university in Germany and a global leader in education technology.
OCI’s share of proceeds, subject to completion, will be c.£240 million, with the sale agreed at the 31 March 2023 carrying value. OCI’s underlying investment in IU increased c.85% in value (+ 64 pence) in 2022 through to December when the sale process for IU began. As part of the transaction, Oakley Capital vehicles including Oakley Capital Fund V will invest in IU, extending Oakley’s ownership and control of the business. OCI’s indirect contribution via Fund V will be c.£67 million.
Note that these figures only relate to OCI’s share of proceeds and its share of Fund V’s overall investment in IU. OCI’s liquid resources including cash and debt available for future deployment (including this transaction) are estimated to be c.£340 million.
Since Oakley invested in the business in 2017, IU’s enrolments have grown from 15,000 in 2017 to over 100,000 today and the group’s digital platform now offers 350 accredited bachelor and master courses, representing the largest portfolio of degree programmes worldwide. The renewed partnership with IU will drive the next phase of the group’s growth, focussing on accelerated internationalisation driven by organic growth and enabling acquisitions in key geographies, to further its vision of democratising education.
Further details on the transaction will be announced by Oakley Capital in due course.
OCI : Oakley to release stake in IU Group