GEMS Education has successfully secured a substantial $3.25 billion sustainability-linked financing facility, marking a significant milestone for the private education provider. The new facility, provided by a consortium of local banks, will enable GEMS to refinance existing debt and buy out the majority of minority shareholders.
Key Points
- Leading Banks Involved: Dubai Islamic Bank (DIB), Mashreq Bank, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank served as underwriters for the financing facility.
- Role of DIB: Dr. Adnan Chilwan, CEO of DIB, highlighted the bank’s crucial role in orchestrating the complex deal, showcasing its strong client relationships and ability to manage multiple stakeholders.
- Investment Consortium: The financing is complemented by an investment from a consortium led by Brookfield Asset Management, expected to conclude in Q3 2024. Other investors include Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan.
Growth of GEMS Education
Founded in 1959, GEMS Education has expanded from a single school to one of the world’s largest private K-12 education providers, serving 140,000 students with various international curricula and services. The investment will support GEMS’ ongoing expansion and innovation in the education sector.
CVC Capital Partners’ Exit
The investment will allow CVC Capital Partners to substantially exit its GEMS stake, which it acquired five years ago, marking its first private equity venture in the Gulf region. This move aligns with CVC’s strategic objectives and underscores the evolving dynamics within the education investment landscape.
Advisory Team
Advisors: deNovo Partners, led by May Nasrallah, and Goldman Sachs Group advised GEMS Education on the transaction. Their expertise was instrumental in structuring the deal and ensuring its successful execution.
Future Outlook
The facility and investment will not only support GEMS Education’s growth but also further its commitment to sustainability and innovation in the education sector. The partnership with Brookfield and other investors is poised to reinforce GEMS’ position as a leader in the global education market.
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