TDR Capital to refinance education provider BPP after £2.5bn sale fails

Private equity behemoth TDR Capital is exploring refinancing options for BPP Holdings, a leading UK provider of professional and academic education, after attempts to sell the institution fell through.

Last summer, reports indicated that TDR was preparing to offload the company, with valuations surpassing £2.5bn, and had enlisted Morgan Stanley and Houlihan Lokey to secure a buyer, as reported by City AM.

However, one interested party remarked that autumn presented an "unfortunate time to be trying to sell a business" amidst the economic uncertainties surrounding Rachel Reeves' inaugural budget.

Among the potential suitors were private equity firms such as CVC, Cinven, and KKR, according to The Times.

With the sale now off the table, TDR is seeking to refinance the educational enterprise.

Previously, in 2021, Apollo Global Management-backed Vanta Education sold BPP to TDR for a figure below £700m.

Following the acquisition, TDR rapidly expanded BPP's services, including the purchase of Buttercup Solutions, which provides training for pharmacists, pharmacy technicians, and hospital support staff.

Last year marked BPP's international expansion with the acquisition of Acsenda School of Management and Arbutus College in Canada.

BPP also operates BPP University, renowned for its accountancy and law courses, catering to 38,000 students, predominantly in postgraduate programs.

In the financial year leading up to April 2024, TDR reported a pre-tax profit of £43m, a period characterised by significant acquisitions, including the supermarket titan Asda.