Sweden mulls ban on PE ownership of schools

The Swedish government is calling for stricter requirements and scrutiny of acquirers of independent schools, as it is reviewing its policies ahead of the 2014 election. The new law could come into effect on 1 January 2015.

In a press conference on Thursday, Björklund said the law proposal will not exclude private equity per se, however, the aim is to secure long-term owners. This in practice excludes most private equity firms, according to the minister.

The suggested reform follows the bankruptcy of Axcel-backed JB Education in May this year. During Axcel's five-year holding period, the low number of students, excessive focus on practical secondary education programs and high debt resulted in JB Education going into administration, according to Swedish publication SvD.

JB Education, Sweden's second largest independent school group, currently has an outstanding debt of around SEK 1bn.

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