Partners Group, a Swiss buyout firm, is considering selling a stake in the International Schools Partnership (ISP) in the UK, according to 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), driven by its annual earnings exceeding 250 million euros. ISP operates 88 schools across 24 countries, focusing primarily on primary and middle-year education. The firm plans to initiate an auction process in the first half of next year, contingent on revenue and enrollment data from the business, which it established in 2013 and has since expanded to serve 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. Partners Group has not commented on the matter, and ISP has not responded to inquiries.

The education sector has seen a surge in investment activity, attracting private equity firms due to its stable demand and predictable revenue streams. For instance, Canadian investor OMERS private equity acquired a 25% stake in ISP three years ago, valuing the company at 1.9 billion euros, including debt. OMERS has also declined to comment on the current situation.

Additionally, Sweden's EQT AB recently formed a consortium with Neuberger Berman Private Markets and the Canada Pension Plan Investment Board to acquire Nord Anglia Education, another international schools operator, for $14.5 billion, including debt.

Overall, the interest in educational institutions reflects a broader trend where investors are drawn to sectors that offer resilience and long-term growth potential, particularly in uncertain economic climates.