Background and Opportunity
In 2019, Revcap established a programmatic joint venture with leading school operator, Forfar Education, to acquire mid-marketUK private schools and to provide quality education for pupils from nursery (6 months) to 18. Revcap also acquired a stake in the OpCo. Between July 2019 and March 2023, the JV acquired 8 schools across regional areas of the UK, serving over 1,450 pupils in the 2022/3 academic year. The JV improved EBITDA through increasing occupancy, operational improvements and enhancing environmental performance through selective capital expenditure. In addition to the social value generated from the provision of high quality education, specific ESG initiatives have been implemented across the portfolio including the use of modular building technology, carbon mapping, the introduction of a forest school and investment into STEM to enhance enrolment.
Project Achievements
- All Schools Rated ISI Excellent, Ofsted Outstanding or Good
- Directly contributes to UN SDG 4 (Quality Education)
- Modular building technology used in the construction of a new nursery which significantly reduced energy usage and sound pollution
- Carbon mapping exercise carried out with the intention to reduce emissions and become one of the 1st carbon neutral private schools groups in the UK
- Engaged with councils to enhance access of facilities for state school pupils alongside Bursary scholarships
- Forest School opened in September 2023 at Dean Park Nursery, adding 20 places to nursery capacity
- Charitable community initiatives run throughout the year
Access to quality education is crucial in enabling many of the UN Sustainable Development Goals (SDGs) to be achieved and to deliver on Goal 4 (Quality Education), education financing and improving school infrastructure is key. Over recent years, the education sector has becoming increasingly attractive to institutional investors given its long term defensive nature, the highly fragmented market and the value of the underlying real estate. Independent schools are seen as being intrinsic to the education system by ensuring that there is increased capacity for pupils, contributing to the economy whilst supporting local employment.
Current Status
In June 2024, Revcap sold its stake via a management backed buy out backed to a Middle Eastern SWF who acquired the Forfar portfolio and OpCo stake.
