Sovereign's World Class Learning to fetch >£150m

Kimberly Romaine
18 February 2013

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Buy-and-build specialist Sovereign Capital is a step closer to realising its 2008 investment in World Class Learning (WCL), a British exporter of educational services.

Sovereign first backed the business in April 2008 through a £34m buyout. Sovereign underwrote the entire deal, later bringing Ares on board as debt provider. Approximately £10m in further funding has been provided since then.

A pre-emptive approach last summer led to Lincoln International being brought on board to conduct a strategic review for WCL. But a sale is not a foregone conclusion, according to Sovereign's Andrew Hayden: "At this point, we are considering all options. Do we keep it? Invest more? Bring another party on board? Or more debt? We will only sell if we see the value we want."

Sovereign has bought two new schools since backing WCL. It has also backed a major roll-out of a start-up school in New York, which was purchased as a greenfield site three years ago.

Investcorp, Carlyle and Providence are among the private equity bidders in the process, with high-net-worth individuals and some trade parties also in the running. First round bids are reputedly upwards of £150m, though Hayden would not comment on this. Timing may also be an issue, with the investment in year seven of the Sovereign vehicle's time period.

London-based WCL's management team is led by CEO Hugh Mac Pherson, who was brought in following the 2008 buyout. WCL now has schools in New York, Boston, Charlotte (in North Carolina), Chicago, Houston, Washington DC, Madrid and two in Qatar (Doha and Al Khor).