$300 M Saudi Education Fund launched by EFG Hermes, acquired Britus Education
With the goal of creating an institutional, world-class K–12 operator in the Kingdom of Saudi Arabia, EFG Hermes, an EFG Holding company and the top investment bank in MENA, announced today that its private equity arm has established a $300 million Saudi Education Fund (SEF). SEF wants to take advantage of the obvious market opportunity presented by the expanding number of students attending private schools, which is predicted to more than double in accordance with Saudi Arabia’s 2030 vision targets, and the urgent need for capable operators to meet this rising demand.
A portfolio of international schools owned by private equity funds managed by GFH under the Britus Education brand has been acquired by SEF, according to EFG Hermes, which also announced that SEF has signed final agreements with GFH Financial Group (GFH), a prominent and dynamic financial group in the GCC. With four schools in Saudi Arabia, two in the United Arab Emirates, and one in Bahrain, this portfolio has a combined capacity of about 12,000 students, of whom about 8,000 are presently enrolled.
“Britus Education represents a distinctive and innovative school brand and platform across the GCC, offering a transformative educational experience. GFH is proud to partner with EFG Hermes to leverage its extensive track record in the education sector and to continue the growth of Britus to new heights. Building on EFG Hermes’ solid success and experience in managing a model educational fund in Egypt, together we strive to enhance access to high-quality education and foster excellence by providing the best learning experiences to students,” said Khaldoun Haj Hasan, Chief Executive Officer of GFH Equities.
“I am thrilled to announce that our Saudi Education Fund has made its inaugural investment in the Kingdom of Saudi Arabia and the broader GCC region with the acquisition of a substantial and diversified portfolio,” stated Karim Moussa, Co-CEO of EFG Hermes. “Drawing on the expertise and insights we’ve gained over the past five years while establishing Egypt’s premier K-12 operator, EEP, we are poised to deliver exceptional educational services to our new student populations. Through this investment, we are committed to ensuring that Britus Education flourishes and adapts to the dynamic needs of students and communities throughout the region.”
In 2018, Egypt Education Platform (“EEP”) was established under EFG Hermes’ first education fund. Since then, the company has acquired, developed, and successfully integrated a uniquely diversified portfolio of 25 assets spread across Egypt, including: (i) 23 schools and preschools with a combined capacity of approximately 25,000 students that offer five curricula (American, British, IB, Montessori, and Egyptian National Curriculum); (ii) an education content company that serves between 3 and 4 million students annually (“Selah El Telmeez”), and (iii) a specialized transportation company called “Option Travel”).
Regulatory approvals and specific conditions must be met for the transaction to proceed. White & Case provided legal counsel to SEF, while PwC Middle East advised on finances and taxes.