Bertelsmann Expands Education Business in Brazil
- Bertelsmann to act as anchor investor in new education fund with Bozano Investimentos
- Investment underscores the Group’s growth strategy
- Participation with target capital of €230 million
Bertelsmann is further expanding its activities in the Brazilian education business. Together with the renowned investment company Bozano Investimentos, the Group is setting up a new fund to invest in fast-growing educational companies in the South American country. One investment focus of the fund with a target endowment of 800 million Brazilian real (approx. €230 million) is medical education.
With a stake of nearly 40 percent, Bertelsmann is the anchor investor in the “Bozano Educacional 2” fund. Besides the international media, services and education company, numerous renowned private and institutional investors are participating. Bozano Investimentos manages the fund, which is expected to invest in six to eight companies.
Thomas Rabe, Chairman & CEO of Bertelsmann, says: “This investment in Brazil is another step on the path to establishing Bertelsmann as a faster growing and more international company. We will continue to invest in education with a view to expanding the business into a third pillar alongside media and services in the medium term.”
As part of its growth strategy Bertelsmann has significantly expanded its activities in the education sector during the past year. In addition to acquiring the online education provider Relias Learning in October 2014, in February this year the Group invested in Alliant International University in the U.S., thereby taking the first steps to establishing an international university network in the Health and Human Sciences sectors. At the end of March, Bertelsmann significantly increased its holdings in Synergis Education, a university services provider in the United States. In June, Bertelsmann invested in Affero Lab, the Brazilian market leader for corporate training/e-learning.
Thomas Mackenbrock, Managing Director of Bertelsmann Brazil: “The new Bozano Educacional 2 fund is the next building block in implementing our Brazilian education strategy. We have now established three platforms for growing our education business in Brazil: Bozano Educational 2, Affero Lab, and BR Education Ventures for investments in Education Technology.”
Bozano Investimentos is a leading Brazilian investment company managed by a team of renowned partners. Altogether, Bozano Investimentos manages capital of over €1.1 billion and has offices in Rio de Janeiro, São Paulo and Recife.
Since the opening of the Corporate Center in São Paulo in 2012, Bertelsmann has actively invested in Brazilian funds and companies in the fields of education and digital media. Bertelsmann has also been active in the South American country for many years through its divisions. For instance, Fremantle Media (RTL Group) has a growing presence and produces local editions of their successful TV formats. Penguin Random House owns a stake in the Brazilian publisher Companhia das Letras. Gruner + Jahr publishes magazines, including car/motorcycle magazines through its Motor Press Brazil subsidiary. Arvato offers a broad portfolio of services and has recently invested in the Brazilian financial-services provider Intervalor.
Bertelsmann is a media, services and education company that operates in about 50 countries around the world. It includes the broadcaster RTL Group, the trade book publisher Penguin Random House, the magazine publisher Gruner + Jahr, the service providers Arvato and Be Printers, the music rights company BMG and the e-learning provider Relias Learning. The company has more than 112,000 employees and generated revenues of €16.7 billion in financial year 2014. Bertelsmann stands for creativity and entrepreneurship. This combination promotes the creation of first-class media content and innovative service solutions that inspire customers around the world.