For-profit | ForProfit EDU

Exclusive Invitation ForProfit EDU group members to attend The Capital Roundtable’s conference on Private Equity at a discount

December 7, 2011 By EDU Guy Leave a Comment

ForProfitEDU would like to extend an exclusive invitation to you to attend The Capital Roundtable’s conference on Private Equity Investing in For-Profit Education Companies, being held on Thursday, January 12 in New York City.

As a partner, we have the privilege to put your name on our VIP list, allowing you to register for a special rate of $995 — $400 off the standard registration price.

This day-long conference is being chaired by Chris Hoehn-Saric, Senior Managing Director at Sterling Partners, and features 20 experts.

For registration or inquiries, just call Anna Fagan at 212-832-7300 ext. 0, or email her at afagan@capitalroundtable.com. Please be sure to mention our name”ForProfitEDU.com”.

For more details, click link below:
http://capitalroundtable.com/masterclass/Capital-Roundtable-For-Profit-Education-Private-Equity-Conference-2012.html

I hope to see you on January 12 for what promises to be a great day.

Have a Wonderful Holiday!

P.S. Since we expect this conference to attract a strong attendance, please register as soon as possible to reserve your seat.

Filed Under: Education Industry Events, Uncategorized Tagged With: career colleges, career education, consumer demand for education, education conference, Education forums, education industry, Education investment conferences, educational marketing, for profit education, for-profit, forprofit colleges, non-profit vs. for profit, PE conference, quality of online degrees

Is For Profit Education Dead?

September 19, 2011 By EDU Guy Leave a Comment

New article by Michael Clifford on significant Ventures

Some would say that the for-profit postsecondary sector is on its last legs… DOA. Capitalism.” He calls this framework for success his Four Gospels of Higher Education:

Fifteen publicly traded education companies have seen their stocks decline by 33% on average since December 2009 versus a 5% increase for the S&P 500. Media accounts abound of allegations regarding improper practices at publicly traded companies, including marketing misrepresentation and fraudulent reporting of placement rates. Twenty state attorneys general are investigating for-profit institutions. No other sector has been as demonized as the for-profit sector has among state and federal politicians over the past several years.

to read the article in its entirety: http://significantfederation.com/eblast/2011.09.14/landing/

Filed Under: Uncategorized Tagged With: career colleges, career education, Department of Education, DOE, education industry, for profit education, for-profit, managing default rates at schools, non-profit vs. for profit, quality of online education

Despite inaccuracies & heavy criticism, Department of Education Moves Ahead With ‘Gainful Employment’ Rule

May 9, 2011 By EDU Guy 5 Comments

Well so many of us tried & cried but it looks as though it’s moving ahead…

In its campaign to block the adoption of a new federal rule measuring how colleges prepare students for “gainful employment,” the for-profit-college industry and its allies have attacked the credibility of the Department of Education, questioning the processes it has followed in developing the new regulation and its competency in managing the kind of data that could eventually be used to cut off vital federal aid.

But despite the well-heeled opposition and recent evidence that the message is taking root — fueled in part by notable missteps by the Education Department in calculating data on default rates and by the yet-to-be explained errors of the Government Accountability Office in its widely publicized undercover investigation of several for-profit colleges — a retreat on the rule isn’t looking likely.

That became clearer last week when the department confirmed that it had made final revisions to the proposed gainful-employment rule and sent it on to the White House Office of Management and Budget, the final stop before it is made public in the Federal Register.

Click link below for full article text.

THE CHRONICLE OF HIGHER EDUCATION

Source:

The Chronicle of Higher Education

Filed Under: For Profit Education Industry, Uncategorized Tagged With: career colleges, career education, education industry, for-profit, forprofit colleges, Gainful employment, gainful employment law, gainful employment rule, non-profit vs. for profit, quality of online education

EDU PE conference standing room only

January 19, 2011 By EDU Guy Leave a Comment

The capital round table event last week at the University Club was standing room only. They had to bring out additional tables to accommodate the surge in attendance. Lots of strong speakers, companies & industry power players delivered yet another strong event. Clearly the most influential gathering of PE investing in education and educational service companies.

Here were a few of the speakers:

CHAIRED BY

Bruce A. Eatroff, Partner

Halyard Capital

Diane Auer-Jones, Career Education Corp.
Jonathan P. Barnes, Halyard Capital
Jay N. Bartlett, Parthenon Group LLC
Erik L. Brooks, ABRY Partners LLC
William C. Clohan, Assoc. of Private Sector Colleges & Universities
John F. Cozzi, AEA Investors LP
Christopher L. Curran, Education Growth Partners
Lincoln E. Frank, Quad Partners LLC
Marcelo Gigliani, Apax Partners LP
Michael B. Goldstein, Dow Lohnes PLLC
James J. Goll, BMO Capital Markets Corp.
Jonathan N. Grayer, Weld North LLC
Carter W. Harned, Leeds Equity Partners LLC
Robert Lytle, Parthenon Group LLC
Jonathon Newcomb, Coady Diemar Partners LLC
Jason Palmer, Kaplan Ventures
Chip Paucek, 2tor Inc.
Nina S. Rees, Knowledge Universe Education LP
Jason Rosenberg, Sterling Partners
Kenneth D. Salomon, Dow Lohnes Government Strategies LLC
Joshua N. Schwartz, East Wind Advisors LLC
Jeffrey M. Silber, BMO Capital Markets Corp.
Jason Stoffer, Maveron LLC
Peter O. Wilde, Providence Equity Partners LLC

Filed Under: Uncategorized Tagged With: capital round table education conference, career colleges, career education, consumer demand for education, Department of Education, education conferences, education pe firms, for profit education, for-profit

Huffington Post Article about Kaplans “Bad Practices”

December 22, 2010 By EDU Guy Leave a Comment

The Huffington post recently posted a strikingly negative article about Kaplan. Link to article is below. The industry is clearly headline material for tv, print and online articles all unfortunately negative, why cant the industry get some positive press? Any of us who have actually been to a graduation at a forprofit school can attest to the lives that have been changed as well as the appreciation from the families and friends.

At Kaplan University, ‘Guerilla Registration’ Leaves Students Deep In Debt

http://www.huffingtonpost.com/2010/12/22/kaplan-university-guerilla-registration_n_799741.html?page=1

Filed Under: Uncategorized Tagged With: admissions, articles about kaplan, consumer demand for education, education industry, for profit education, for-profit, Gainful employment, huffington post article on kaplan, kaplan admissions tactics, managing default rates at schools, quality of online education

BMO Conference was Packed as expected!

September 17, 2010 By EDU Guy 1 Comment

Yesterday was the BMO annual Back to School conference in NYC. As expected in this active political climate relating to the sector, it was packed. First I want to congratulate BMO for the excellent job they did, they not only put out a great agenda with the top tier participants, they also provided a quality environment for networking, private discussions and of course plenty of food & beverage.

Almost every session was standing room only with people listening closely to what the power players were saying relating to current operations, government proposed changes and the potential effects on their businesses. Also it was great to hear such organized demonstrations of the faults inherent within the proposed rule making. I only wish many of the news outlets would broadcast those messages before the proposed changes become rules. While CNBC was there networking and doing some interviews we have yet to see many of the concrete negative attributes of the proposed changes made public with the national media. Hopefully that will change soon.

Clearly there are many conflicts with the governments intended goals regarding educating America and the actual negative outcomes the proposed rules will result. Who is going to push the value of college to those consistently neglected. Who is going to take the risk of trying to educate those who need it most, but represent the biggest default risk? Clearly there are many conflicts with the discussions relating to the cost/waste of tax payers money on the forprofits and the reality of actual cost to the tax payer without them. Clearly they are not comparing apples to apples with the facts and figures, rather shouting sound bites and political buzz words to seek attention in the active political climate.

Also, Steve Eisman the industry short attended some of the conference, what are the odds his mind was open to any of the data presented…

Filed Under: Uncategorized Tagged With: Back to school conference, BMO conference, BMO education conference, career colleges, career education, consumer demand for education, Department of Education, education industry, for profit education, for-profit, forprofit colleges, managing default rates at schools, non-profit vs. for profit, safe harbors, short education stocks, Steve Eisman the industry short

University of phoenix & nexus research first report on most efficient systems of higher education

September 2, 2010 By EDU Guy Leave a Comment

Two years ago, the founders of the University of Phoenix announced plans that they were going to create an independent, nonpartisan research institute to examine significant educational issues affecting nontraditional students and for-profit higher education. Industry analysts, excited to get a peek into the loads of data that Phoenix and other proprietary institutions track about their students and teaching methods,were excited about the news.

The report, “For-Profit Colleges and Universities: America’s Least Cost and Most Efficient System of Higher Education,” lofts praises of the University of Phoenix and other for-profit colleges. It postures that many of the problems of the industry highlighted in Congressional hearings and flow of negative news accounts are not systemic, and also dishes an attack on traditional colleges as “studies in inefficiency.”

the full report is available here: http://nexusresearch.org/1/NexusStudy8-31-10.pdf

Filed Under: Uncategorized Tagged With: apollo, career colleges, career education, consumer demand for education, cost of tuition, for profit education, for-profit, forprofit colleges, managing default rates at schools, nexus research report on education, nexus research report on for profit education, non-profit vs. for profit, student marketing, univeristy of phoenix default rate, University of phoenix

Apollo group’s position paper on Higher education

August 26, 2010 By EDU Guy 1 Comment

The Current State of Higher Education in America and the Vital Role of Proprietary Colleges and Universities

Gregory W. Cappelli Co-Chief Executive Officer of Apollo Group and Chairman of Apollo Global

■ America is at a crossroads with respect to how the nation’s higher education system will adapt to meet the needs of today’s learners.

At Apollo Group, we are concerned that the country will not meet the national education goals set forth by President Obama without an adaptable postsecondary system that operates differently than it has in the past–a system that embraces diversity and innovation.

■ More Americans than ever need a college degree and are seeking access to higher education.

Jobs today require higher education, yet out of 132 million people in the labor force, more than 80 million don’t have a bachelor’s degree, and 50 million adults have never even started college. These individuals are increasingly looking for ways to remain competitive and advance in their careers in today’s global economy.

■ Those seeking access to higher education are less prepared than in the past and require greater support.

High school dropout rates are now approximately 55% in many major cities like New York and Los Angeles. Even more concerning, many students who do graduate cannot perform at the twelfth grade level in reading or math.

■ Over 70% of today’s students are now categorized as “non-traditional” students.

Our colleges and universities must meet the needs of today’s learners who have families and professional obligations that make it incrementally challenging to pursue a college degree.

■ Traditional colleges and universities are the backbone of the U.S. higher education system, but they alone cannot meet the country’s needs.

This system, which is exclusive by design, was built to meet the needs of a different era when only a small portion of the nation’s workforce needed a college degree. Today’s globally competitive, knowledgebased economy requires a more broadly educated society.

■ President Obama has set forth three important goals for the U.S. higher education system which are critical to the country regaining its standing as a global leader in education.

On a sobering note, we estimate that without proprietary schools, meeting these goals would cost U.S. taxpayers more than $800 billion over the next ten years.

■ Accredited, degree-granting proprietary institutions, which have been a strong source of innovation, play a critical role in the future of education.

These institutions provide access to students who previously have been left behind by or excluded from the traditional higher education system. Well managed proprietary institutions can meet the demand for education at a significantly lower cost to society.

Link to the complete white paper: http://www.apollogrp.edu/Investor/Reports/Higher_Education_at_a_Crossroads_FINALv2[1].pdf

Filed Under: Uncategorized Tagged With: apollo groups white paper, Department of Education, education industry, for profit education, for-profit, managing default rates at schools, The Current State of Higher Education in America and the Vital Role of Proprietary Colleges and Universities, univeristy of phoenix default rate, University of phoenix, white paper on for profit vs. non profit

“Sector Under Siege?”,

June 14, 2010 By EDU Guy Leave a Comment

An article with that title was published on the website Inside Higher

Education. In their opinion the gainful employment rule is expected to be excluded from next

week’s education proposal. The article outlines that the Office of Management and Budget

included a note in the Federal Register concluding that the DOE’s proposed program integrity

rules could have a major economic impact, a designation that would require the DOE to

strengthen the evidence necessary to justify the need for the regulation. Furthermore, the article mentions

that the designation is believed to be a major reason why the DOE has (according to reports

from several sources Thursday, though unconfirmed by department officials directly) decided

to omit the gainful employment proposal from the proposed regulations expected to be

released next week. This if the outcome follows the assumption will bring smiles to many of the faces I saw at last

weeks CCA. Lets hope!

Filed Under: Uncategorized Tagged With: apollo, career colleges, career education, cost of tuition, education industry, educational marketing, for profit education, for-profit, Gainful employment, managing default rates at schools, non-profit vs. for profit

CUnet/Nelnet acquires Sparkroom.

January 11, 2010 By onlineedu Leave a Comment

PARAMUS, N.J., and TORONTO, Jan. 11 /PRNewswire/ — CUnet, a subsidiary of Nelnet Inc. (NYSE: NNI), announced today that it has entered into an agreement to acquire Sparkroom, a leading provider of enrollment marketing automation and lead performance management solutions. The parties anticipate closing the transaction on February 1, 2010.

Sparkroom provides business intelligence and lead delivery software that helps organizations immediately improve marketing efficiency and increase profitability by managing, measuring, and optimizing lead performance across all direct response marketing channels. Sparkroom's Lead Performance Management product suite, which includes LeadDeliver, LeadIQ, and Lead Market Analytics, enables direct marketers in higher education to:

   -- Understand the performance of every lead, regardless of the channel 

   -- Proactively manage lead vendors 

   -- Align marketing with sales or enrollment targets 

   -- Immediately improve the performance of marketing spend

“We are excited by the opportunities created by bringing CUnet and Sparkroom together,” said Matt McLaughlin, President of CUnet. “Sparkroom's technology products will complement CUnet's interactive media and marketing services to provide a powerful solution for colleges to drive the most value from their marketing spend. It's a great fit that will benefit marketers in the higher education sector.”

CUnet provides clients with a wide range of performance marketing services including vendor lead management, call center management, search marketing, display advertising, social media management, mobile marketing, and school operations consulting. Sparkroom's Lead Performance Management product suite provides comprehensive technology tools to education marketers, allowing them to make faster, data-driven decisions that drive marketing efficiency and business profitability. The companies will offer an industry-leading mix of marketing services and technology solutions for educational institutions from a single provider.

“Sparkroom's mission is to enable our customers to optimize their investments in interactive direct response marketing,” said Jamie McDonald, CEO of Sparkroom. “By teaming up with CUnet, we will accelerate our ability to deliver on that mission and bring new ground-breaking products to the market, which will continue to improve marketing efficiency for higher education marketers.”

Sparkroom co-founders McDonald and Jamie Shulman, Vice President of Operations, will continue to lead Sparkroom and its associates from Toronto.

While the purchase price is not material to Nelnet, the acquisition adds strategic value to the company by broadening its lead generation products and services business and further strengthens its lead generation technology.

About CUnet

CUnet is the premier provider of online performance media and interactive marketing services driving qualified student inquiries and enrollments for the higher education industry. Founded in 2003, the company has grown rapidly to oversee the promotional campaigns of over 1 000 colleges, universities, and career schools throughout the United States and Canada. CUnet is dedicated to creating cost-effective marketing programs using a mix of online media strategies and formats to find prospective students, generate qualified responses, and maximize enrollments and starts. CUnet is a subsidiary of Nelnet, a leader in education planning and financing for more than 30 years. CUnet is based in Paramus, NJ. For more information, visit www.cunet.com.

About Sparkroom

Sparkroom delivers innovative solutions to direct marketers, including its comprehensive Lead Performance Management software and services. Sparkroom Lead Deliver, Lead IQ, and Lead Market Analytics deliver a hosted business intelligence platform to give direct response marketers the tools and expertise needed to measure, manage, and optimize their lead acquisition spending across every direct response channel. Sparkroom's software, which it hosts and delivers to its customers on demand, enables customers to capture, store, and analyze information generated by their lead buying activities and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. Founded in 2007, Sparkroom is privately held. For more information, visit www.sparkroom.com.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or expected. Among the key factors that may have a direct bearing on Nelnet's operating results, performance, or financial condition expressed or implied by the forward-looking statements are the uncertain nature of the expected benefits from the acquisition and the ability to successfully integrate operations, changes in terms of student loans and the educational credit marketplace changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, or changes in the general interest rate environment and in the securitization markets for education loans.

(code #: nnig)

SOURCE Nelnet Inc.

/CONTACT: Media, Ben Kiser, +1-402-458-3024; Investors, Phil Morgan, +1-402-458-3038; both of Nelnet Inc.

/Web site: http://www.nelnet.com

Filed Under: Uncategorized Tagged With: admissions, cunet, cunet acquires sparkroom, education industry, education lead generation firms, education M&A, educational marketing, for profit education, for-profit, in-sourcing vs. outsourcing, sparkroom, student marketing