Dubai’s GEMS Education has secured a new financing arrangement tied to sustainability goals from a group of local lenders.
The facility, alongside an investment from a consortium of regional and international investors led by Brookfield Asset Management, allowed GEMS to restructure its current debt and acquire the majority of minority shareholders.
Underwriters for the financing facility included Dubai Islamic Bank (DIB), Mashreq Bank, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank.
Dr. Adnan Chilwan, CEO of the banking group, highlighted DIB’s central role in orchestrating the deal, underscoring its strong ties with major clients like GEMS and its capability to coordinate numerous stakeholders in a complex transaction.
Meanwhile, the Brookfield consortium’s investment is slated for completion in Q3 2024, subject to conditions. Other investors involved are Dubai-based Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan.
GEMS, initially established as a single school when the founding family arrived as educators in Dubai in 1959, has since expanded to become one of the world’s largest providers of private K-12 education, serving 140,000 students.
The institution offers a range of international school curricula at various price points, alongside additional services such as school transportation and after-school activities.
This investment will enable CVC Capital Partners to significantly reduce its stake in GEMS five years after its initial investment, marking its inaugural venture into Gulf private equity.
Additionally, GEMS reported securing funds from a consortium of UAE banks to finance the transaction, including repayment of existing obligations.
Brookfield made its investment through specialised investment and Middle East private equity programmes.
GEMS Education received counsel from deNovo Partners, a Dubai-based boutique founded by former Morgan Stanley banker May Nasrallah, and Goldman Sachs Group.
