Project Description

R3 Education

Prairie Capital Fund IV

Location Gardner, MA
Transaction Type Growth Buyout with Management
Investment Date April 2007
Exit Date February 2020
Buyer Global University Systems

Holding company which holds (i) the Saba University School of Medicine, Medical University of the Americas and St. Matthew’s University, three leading for-profit universities that award four-year graduate degrees in Doctors of Medicine with medical program curricula based on those of leading U.S.-based medical schools, (ii) St. Matthews School of Medicine and (iii) Sierra Education Inc., a student loan financing company.

Industry Education

Investment Rationale

  • The imbalance between the U.S. supply of physicians and the demand for medical services created a tremendous market opportunity
  • The Company was fully accredited by the Department of Education and was not dependent on Title IV Funding
  • The Company’s 4-year programs provided for predictable, recurring revenue streams and had a leverageable infrastructure

Value Add

  • Add-on Acquisitions