Alvarez & Marsal Finds Education Technology Ripe For Private Equity Investment

Jeff Shaffer, Managing Director Vadim Tsysin, Managing Director

Service / Industry: New York, NYPrivate Equity

Education Technology: Investing In Companies That Meet the Needs of The New Learning Landscape

Alvarez & Marsal’s (A&M’s) Private Equity Performance Improvement Group (PEPI) has developed a Point of View on the effects of the Covid-19 pandemic on U.S. Education and where opportunity lies for Private Equity (PE) investment.

A&M’s Whitepaper, “Education Technology: Investing In Companies That Meet the Needs of The New Learning Landscape,” breaks down the attributes of attractiveness of education companies and why we believe that the Education Technology (EdTech) sub-sector offers the strongest value proposition to PE investors.

Key Findings:

EdTech is best positioned to capitalize on market forces and is the most attractive sub-sector for PE investment.
The EdTech market is growing rapidly and is projected to reach ~$100 billion in annual revenue in North America by 2027.
By 2023, there will be $16.7 billion spent on technology in the U.S. postsecondary sector.

Authors

Jeff Shaffer

Jeff Shaffer is a Managing Director with Alvarez & Marsal’s Private Equity Services Group in Los Angeles, specializing in pre and post-acquisition IT and operations assessment and integration. His primary areas of concentration are due diligence, post-merger integration, carve-out planning and execution, IT strategy, systems integration and interim management.