Sign up

Have some pie!

CEG in £23m private equity recap

Cambridge Education Group (CEG), the UK pathways player, has paved the way for a new stage of growth with a major recapitalisation by its owners, the private equity group Palamon Equity Partners.

"The business is on a clear path to continue increasing profitability significantly over the coming years"

Palamon, which bought CEG in 2007, will provide £23 million in financing through Royal Bank of Scotland. This will enable a dividend payout for equity holders and support continued growth at CEG which has seen revenues triple in five years.

Dan Mytnik, partner at Palamon Capital Partners commented, “With Cambridge Education Group, we have supported a well positioned company to execute a remarkable growth strategy. The business is on a clear path to continue increasing profitability significantly over the coming years by further developing its teaching capacity and enlarging its footprint.”

The move is yet another sign of the buoyancy of the pathways industry. Palamon said it originally acquired CEG having identified the growing attractiveness of British education to international students.

Since then CEG has seen revenue climb to £55 million and more than quadrupled its student cohort from 460 to over 2,000. The new financing has also enabled the repayment of Palamon’s initial capital plus a return of more than 50%. Palamon and the management team continue to own a significant majority shareholding in the company.

CEO of CEG, Fergus Brownlee said, “With Palamon’s financial and strategic support we have been able to execute an organic growth strategy that has tripled the size of the business in five years. With the additional backing of RBS we now have in place the facilities and capital structure to underpin the next stage of our development. We are delighted to have secured this backing.”

Related articles

Still looking? Find by category:

Add your comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: All user contributions posted on this site are those of the user ONLY and NOT those of The PIE Ltd or its associated trademarks, websites and services. The PIE Ltd does not necessarily endorse, support, sanction, encourage, verify or agree with any comments, opinions or statements or other content provided by users.

To receive The PIE Weekly with our top stories and insights, and other updates from us, please