Private equity firm Partners Group is contemplating the sale of a stake in the International Schools Partnership (ISP), a UK-based network of private schools valued at approximately €5 billion ($5.38 billion). This valuation is attributed to ISP's robust annual earnings exceeding €250 million and the increasing demand for educational assets, as reported by Reuters.

Founded by Partners Group in 2013, ISP operates 88 schools across 24 countries, primarily catering to primary and middle-year students. The network serves over 80,000 students and has experienced rapid growth, benefiting from the education sector's stable and counter-cyclical demand. Partners Group is expected to begin an auction process in the first half of next year, depending on revenue trends and enrollment figures. However, the sale is not guaranteed and will be influenced by market conditions.

While representatives from Partners Group have declined to comment, ISP has not responded to inquiries regarding the potential sale. The education sector remains a focal point for private equity investors, drawn by its predictable revenue streams and resilience during economic downturns.

In a notable past investment, Canadian firm OMERS acquired a 25% stake in ISP three years ago, valuing the company at €1.9 billion, including debt. Additionally, Sweden's EQT AB, in collaboration with Neuberger Berman Private Markets and the Canada Pension Plan Investment Board, recently completed a $14.5 billion acquisition of Nord Anglia Education, further highlighting the sector's attractiveness to investors.

Overall, the potential sale of ISP underscores the growing interest in educational investments within the private equity landscape.