LONDON, UK: Oakley Capital Investments Limited (OCI) has announced that its investment fund, Oakley Capital Fund III, has reached an agreement to sell its stake in IU Group, the largest and fastest-growing university in Germany, and a global leader in education technology.
The sale of the stake has been agreed at the carrying value of 31 March 2023, and OCI’s share of proceeds will be around £240 million, subject to completion.
OCI’s underlying investment in IU increased in value by approximately 85% 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 around £67 million.
Since Oakley’s initial investment in 2017, IU’s enrolments have grown from 15,000 to over 100,000, 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 is expected to 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.
The transaction will contribute significantly to OCI’s liquid resources, which are estimated to be around £340 million. OCI’s Chief Executive Officer, Peter Dubens, said, “We are very pleased with the successful realisation of our investment in IU Group, which has seen remarkable growth and expansion under Oakley’s ownership. We are delighted to be able to reinvest some of the proceeds back into the business, and we look forward to working with Oakley Capital Fund V to continue the next phase of IU’s growth and internationalisation.”