EFG Hermes launches $300 million Saudi Education Fund, acquires Britus Education

EFG Hermes launches $300 million Saudi Education Fund, acquires Britus Education

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• 18 November, 2024

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Arabic

• Egypt’s EFG Hermes’s private equity arm has launched a $ 300 million Saudi Education Fund (SEF).
• The fund aims to build an institutional world-class K-12 operator in Saudi Arabia, capitalising on the growing student population in private schools.
• EFG Hermes will also acquire a portfolio of international schools in KSA, the UAE and Bahrain, owned by private equity funds managed by GFH under the brand name of Britus Education.

Press release:

EFG Hermes, an EFG Holding company and the leading investment bank in MENA, announced today that its private equity arm has launched a $300 million Saudi Education Fund (SEF) with the target of building an institutional world-class K-12 operator in the Kingdom of Saudi Arabia. SEF aims to capitalise on the clear market opportunity that is evidenced by the growing student population in private schools, which is expected to more than double in line with Saudi’s 2030 vision targets and the critical need for strong operators to cater to such growing demand. 

EFG Hermes also announced that SEF has entered into definitive agreements with GFH Financial Group (GFH), a leading and dynamic financial group in the GCC, to acquire a portfolio of international schools owned by private equity funds managed by GFH under the brand name of Britus Education. This portfolio includes four schools in Saudi Arabia, two in the UAE, and one in Bahrain, boasting a total capacity of approximately 12,000 students, with nearly 8,000 students currently enrolled.

“Britus Education represents a distinctive and innovative school brand and platform across the GCC, offering a transformative educational experience. GFH is proud to partner with EFG Hermes to leverage its extensive track record in the education sector and to continue the growth of Britus to new heights. Building on EFG Hermes’ solid success and experience in managing a model educational fund in Egypt, together we strive to enhance access to high-quality education and foster excellence by providing the best learning experiences to students,” said Khaldoun Haj Hasan, Chief Executive Officer of GFH Equities.

“I am thrilled to announce that our Saudi Education Fund has made its inaugural investment in the Kingdom of Saudi Arabia and the broader GCC region with the acquisition of a substantial and diversified portfolio,” stated Karim Moussa, Co-CEO of EFG Hermes. “Drawing on the expertise and insights we’ve gained over the past five years while establishing Egypt’s premier K-12 operator, EEP, we are poised to deliver exceptional educational services to our new student populations. Through this investment, we are committed to ensuring that Britus Education flourishes and adapts to the dynamic needs of students and communities throughout the region.”

Egypt Education Platform (“EEP”) was launched under EFG Hermes’ first education fund back in 2018, and since then, the company has acquired, developed, and successfully integrated a uniquely diversified portfolio of 25 assets spreading across Egypt and comprising (i) 23 schools and preschools offering 5 curricula (American, British, IB, Montessori and Egyptian National Curriculum) with a combined capacity of c.25k students, (ii) an education content business that serves between 3-4 million students annually (“Selah El Telmeez”), and (iii) a specialised transportation business that transports over 3k students daily (“Option Travel”).

The transaction is subject to certain conditions and regulatory approvals. PwC Middle East served as financial and tax advisor to SEF and White & Case as legal counsel.