Oakley Capital takes on German higher education group

Oakley Capital Investments said on Monday that Oakley Capital Private Equity III has agreed to acquire Apollo Global Germany from its current shareholder Apollo Education Group.

The AIM-traded company said Fund III, together with a number of underlying Fund III investors, would hold a 79% stake in the business.

It would be partnering with CEO Sven Schütt and his management team, who would also be investing in the new structure.

Oakley described Career Partner Group as a “leading” provider of private higher education and personnel development in Germany.

Operating principally under the brand of International University of Applied Sciences Bad Honnef (IUBH), the business currently has more than 13,500 students enrolled in four types of programmes - traditional on-campus universities, online university degree courses, dual studies - an alternative to traditional apprenticeships - and corporate training.

Fund III would reportedly seek to support the continued development of the business, particularly in the online university and dual studies segments, both of which Oakley called “high-growth” sectors in Germany.

The business generated revenues of €61.5m and reported EBITDA of €10.3m for the year to 31 August.

Oakley said the transaction was partly funded by a unitranche debt facility from BlueBay.

Fund III would invest €85m in the business, with the company's indirect contribution through its interest in Fund III being £30m.

Completion remained subject to approval by the Federal Cartel Office, and was anticipated to be on 31 December.

“On behalf of the management team and employees of Career Partner Group, we look forward to having Oakley as our new partner,” said Career Partner Group CEO, Dr Sven Schütt.

“The business has flourished under the ownership of Apollo and we are very grateful for their support.

“There are also many exciting opportunities ahead of us as the market for online education further develops in Germany.”

Peter Dubens, managing partner at Oakley Capital, said the firm was “delighted” to be building on its expertise in the sector with another investment in education.

“CPG is a dynamic and high-growth business that has been a leader in the delivery of online higher education in Germany and is set to continue on that path with Oakley as a partner.”