EFG Hermes launches $300M Saudi Education Fund

Updated 11/18/2024 10:17:00 AM

Arab Finance: The private equity arm of EFG Hermes, an EFG Holding company, has launched a $300 million Saudi Education Fund (SEF), targeting the construction of an institutional world-class K-12 operator in Saudi Arabia, as per an emailed press release.

SEF is set to capitalize on the apparent market opportunity reflected in the growing student population in private schools, which is expected to more than double in line with Saudi Vision 2030 targets and the call for strong operators to cater to such increasing demand.

The new fund has also entered into definitive agreements with GFH Financial Group to acquire a portfolio of international schools owned by private equity funds managed by GFH under the brand name of Britus Education.

This portfolio includes four schools in Saudi Arabia, two in the UAE, and one in Bahrain. It boasts a total capacity of around 12,000 students, with nearly 8,000 students currently enrolled.

The transaction is pending regulatory approvals and certain conditions.

PwC Middle East served as financial and tax advisor to SEF, with White & Case as legal counsel.

“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,” Khaldoun Haj Hasan, Chief Executive Officer of GFH Equities, said.

"Drawing on the expertise and insights we have gained over the past five years while establishing Egypt’s premier K-12 operator, Egypt Education Platform (EEP), we are poised to deliver exceptional educational services to our new student populations,” Karim Moussa, Co-CEO of EFG Hermes, commented.

“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,” Moussa added.

It is worth noting that EEP was launched under EFG Hermes’ first education fund back in 2018. Afterwards, the company acquired, developed, and integrated a diverse portfolio of 25 assets across Egypt.