Partners Group, a Swiss buyout firm, is considering selling a stake in the International Schools Partnership (ISP) in the UK, as reported by sources familiar with the situation. This move aims to capitalize on the growing interest in educational assets, which have become increasingly popular among investors.

The potential sale could value ISP at over 5 billion euros ($5.38 billion), based on its current annual earnings exceeding 250 million euros. ISP operates 88 schools across 24 countries, focusing primarily on primary and middle-year education. Partners Group is expected to initiate an auction process in the first half of 2025, contingent on revenue and enrollment data from the business it established in 2013, which now serves over 80,000 students.

While the sale process is still in its early stages, sources caution that a deal is not guaranteed and will depend on market conditions. Both Partners Group and ISP have not provided comments on the matter. The education sector has seen a surge in investment activity, with private equity firms attracted by the stable demand for educational services and the long-term revenue potential they offer.

In a related context, Canadian investor OMERS private equity acquired a 25% stake in ISP three years ago, valuing the company at 1.9 billion euros, including debt. Additionally, Sweden's EQT AB recently formed a consortium to acquire Nord Anglia Education, another international school operator, for $14.5 billion, highlighting the robust interest in the education sector.

Overall, the potential sale of ISP reflects a broader trend of increasing investment in educational institutions, driven by their resilience and revenue predictability in various economic climates.