Mumtalakat, Fajr Capital and Blackstone complete exit from GEMS Education

A consortium of investors led by Fajr Capital, including Tactical Opportunities funds managed by Blackstone (Blackstone) and Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of Bahrain, yesterday announced the completion of their divestment from GEMS Education to a consortium led by CVC Capital Partners.

In July 2019, funds advised by CVC Capital Partners signed a definitive agreement to acquire approximately a 30 per cent stake in GEMS Education, one of the world’s oldest and largest providers of private K-12 education. GEMS Education, a UAE-born brand founded sixty years ago, educates over 120,000 students across 48 schools in the Middle East.

Fajr Capital, Blackstone and Mumtalakat invested in GEMS Education in 2014 and subsequently partnered with the Varkey Group to build the company into a world-class institution and support its longterm growth. Dino Varkey, CEO, GEMS Education, said: “The completion of the Fajr Capital, Blackstone and Mumtalakat investor group’s exit from GEMS Education to a consortium led by CVC Capital Partners marks another chapter in the evolution of our company. We thank each of these investors for their contributions over the past five years.”

Iqbal Khan, CEO of Fajr Capital, added: “Today’s announcement marks Fajr Capital’s third successful recent divestment and builds on our strong track record of investing in high-quality businesses across the Middle East and Southeast Asia.” Andrea Valeri, Senior Managing Director at Blackstone, said: “Together we have invested over US$1 billion to double the size of the business while maintaining a focus on academic excellence.”

Mahmood H. Alkooheji, CEO of Mumtalakat, explained: “Over the last five years, GEMS Education has invested over US$1 billion in expansions and enhancements, in addition to investing in a wide portfolio of fourteen schools in KSA and four schools in Egypt through joint ventures, providing more young people with quality education than ever before.

Our investment in GEMS Education was a reflection of our outlook on the education sector and our interest in strong companies with forward-thinking management teams.” Fajr Capital, Blackstone, and Mumtalakat were advised by Rothschild & Co, Morgan Stanley, Credit Suisse and Gibson, Dunn & Crutcher LLP.