A consortium led by Brookfield Asset Management has announced plans to invest in GEMS Education, one of the world’s largest providers of private K-12 schooling.
The consortium, which also includes Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of Azerbaijan, has entered into a binding agreement to invest in GEMS, partnering with the Varkey Group.
The transaction is expected to reach completion by Q3 2024.
Established in 1959 with a single school in Dubai, GEMS has since grown, now teaching over 140,000 students across multiple international curricula and price points. The company has also expanded into adjacent services like school transportation and after-school programs.
GEMS has also secured new financing commitments from UAE banks to finance the transaction, including the payment of existing financial agreements.
The new terms will also see the exit of GEMS’ existing minority shareholders, including Malaysia’s sovereign wealth fund Khazanah, as well as a substantial reduction in the stake held by CVC Capital Partners.
Sunny Varkey, Founder of GEMS, said, “GEMS has experienced significant growth over our 65-year history and has become one of the world’s most respected education companies. As a long-term, operationally focused investor, Brookfield’s partnership with the family and the GEMS community demonstrates the breadth of the business, the quality of the education, and the critical infrastructure that we deliver for the UAE.”
Dino Varkey, Group Chief Executive Officer of GEMS, said, “Providing a truly world-class education is our singular purpose at GEMS Education. Our impact in the world today has never been stronger, and that has been made possible by our exceptional team. We are well positioned for future growth, thanks to a supportive operating environment that is driving record enrolments, underpinned by a strong UAE economy and a growing population. We believe that Brookfield is the right investment partner to help us realise our ambitions as we look to the next phase of growth.”
Brookfield, a global alternative asset manager with over $925 billion in assets, highlighted the appeal of GEMS’ market leadership, stable cash flows, and growth potential.
Jad Ellawn, Managing Partner and Regional Head, Middle East, Brookfield, said: “The investment in GEMS marks a milestone for Brookfield and our private equity business in the Middle East, underscoring our commitment to investing in this high-growth region and the strength of our local partnerships.”
Dev Santani, Managing Director, Brookfield Special Investments said, “With its scale, industry leadership and stable, recurring cash flows, the GEMS transaction provides an opportunity to combine our deep local presence, operating expertise and Brookfield’s global ecosystem with the strategic, flexible capital solutions offered though our Special Investments program to support the company’s growth. We look forward to working alongside the Varkey Group and our partners as we embark on GEMS’ next chapter.”
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