Did you know that the education sector now represents nearly 9 percent of the country’s gross domestic product? That for-profit education is valued at $1.3 trillion, and is one of the largest U.S. investment markets?

These facts were part of an advertisement for a conference for investors in for-profit education ventures, just one example of how much the profit motive has entered into the public education arena. The conference is one of two examples of how school reform has become little more than a business in some arenas (and just how removed some reformers have gotten from classrooms and the actual dynamic of teaching and learning).

If you had wanted to attend this conference for private equity investing in for-profit education companies, you missed it, (but you did save the walk-in fee of $1,495). Featured at the conference were “20 education experts,” none of whom are actually teachers.

Harold Levy, Managing Director

Palm Ventures

FULL-DAY CONFERENCE

Tuesday, January 15, 2013

8:00 am – 5:00 pm

New York City

Designed to Meet the Needs of GPs, LPs, & Managers of Buyout, Growth Equity, Mezzanine, & Lending Funds, as Well as Independent Sponsors, Operating Partners, Portfolio Company Managers, and the Bankers, Lawyers, Accountants, & Other Advisors Who Support Them

Private equity investing in for-profit education is soaring, and for good reason — the public and non-profit models are profoundly broken.

This is why for-profit education is one of the largest U.S. investment markets, currently topping $1.3 trillion in value.

Look at the current state of K-12 public education. School districts across the U.S. are underfunded, underperforming, and well behind the curve when it comes to adopting quality technologies.

Many simply lack the expertise to treat today’s applied technologies as not just gadgets or strategic opportunities, but as real solutions for expanding their capacity to teach students.

And in the post-secondary world, non-profit institutions are finding that very few enticements are bringing in money. Not sports. Not research. Not classrooms.

Public funding and private endowments are both down, and neither will be particularly reliable in the future.

So 2013, and beyond, will see numerous for-profit companies making inroads into public and non-profit education by taking over large swaths of the market. What’s more, they’ll prosper in the corporate training and continuing education marketplace as well.

Consider —

• The entire education sector now represents nearly 9 percent of the U.S. GDP.
• Merger and acquisition activity in for-profit education last year surpassed activity at the peak of the Internet boom.
• More and more non-profit colleges are hitting the wall and seeking investors to help them transform into for-profit institutions.

You’ll learn how to achieve investment success in this education revolution when you attend The Capital Roundtable’s ENCORE conference — “Private Equity Investing in For-Profit Education Companies,” being held in New York City on Tuesday, January 15.

Here are 6 important reasons you should attend this conference:

• Understand which technologies are the engines of change for the entire for-profit education industry.
• Hear how online services go well beyond coursework solutions to include engagement, assessment, and other critical needs.
• Realize what new regulations can be expected during the next presidential term.
• Find out which technologies are poised to take off, such as massive open online courses (MOOCs), adaptive learning platforms, and virtual laboratories.
• Recognize the growing demand for training tools to assess performance and measure effectiveness.
• Gain insight on the strongest opportunities to lower costs and improve learning.

Serving as chair of this ENCORE conference on Tuesday, January 15, in New York. is Harold Levy. former Chancellor of the New York City School System and now managing director at Palm Ventures in Greenwich, Conn.

Palm is a family office that invests in for-profit education and other capital investments with a positive and transformative effect on society.

Harold leads the education practice, capitalizing on his vast experience in education and finance. He is also former executive vice president and general counsel of Kaplan Inc. director of Global Compliance of Citigroup, and head of litigation at Salomon Brothers.

He has served on the boards of a number of academic institutions and for-profit education companies. Harold is presently treasurer of the Roosevelt Institute and a member of the Presidential Advisory Committee of Teachers College, Columbia University. He holds a B.S. and J.D. from Cornell University and a M.A. (PPE) from Oxford University.

20 Education Experts Bring You A Day Of Rewarding Lessons

Our Roundtable features 4 expert panel discussions led by our chair and with the shared insight of 20 of the top private equity experts in the for-profit education marketplace.

When you attend our January 15th Roundtable you will listen and learn from GPs, operating executives, investment bankers, lenders, consultants, and more — offering real-world perspectives. lessons learned and industry outlooks, plus insights on managing current portfolio companies.

By attending this Capital Roundtable conference, you’ll be wise to the winning strategies and tactics of successful investors in for-profit education companies. You’ll also hear how they are adding value to their current portfolio companies. We’ll be answering such questions as:

• What are some of the main challenges that PE investors are facing in the education sector?
• How are lenders approaching education deals, and what factors are behind their decisions?
• How can new investors in for-profit education avoid common traps and pitfalls?
• What specific sectors within the for-profit education marketplace may hold the greatest promise for investors?
• What specific criteria should you use in evaluating potential deals?
• What are current sector valuations — reasonable, high, or somewhere in between – and how may they change in 2013?

Our Excellent Networking Opportunities May Be Reason Enough To Attend

We’ve built ample time into the day’s agenda so you can –

• Meet fellow attendees and featured speakers
• Enhance your personal database with valuable connections
• Share both ideas and business cards
• If you’re a lender, hedge fund manager or investment banker – identify potential partners
• If you’re an attorney or advisor – meet new potential clients
• If you work as an executive search professional – meet potential prospects

Register Now and Receive Our Early Bird Discount

Early registration for this encore conference is not just a wise idea, but also saves you money. To receive a generous discount of $400 off our regular price, simply sign up before November 20, 2012 .

Keep in mind this conference is certain to fill up quickly, so you’ll want to register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Mara Kane today to confirm your attendance at 212-832-7300 ext. 0 or mkane@capitalroundtable.com

We look forward to having you join us on January 15th.

This conference is being produced by The Capital Roundtable, America’s leading conference organization focusing on “need-to-know” information for professionals in the middle-market private equity community. For more information about The Capital Roundtable’s 30 annual conferences and other events and programs, please visit www.capitalroundtable.com .

Chaired By

• Harold Levy. Managing Director, Palm Ventures

• David F. Bainbridge, Managing Director, Veronis Suhler Stevenson LLC
• James A. Bland. Principal, HCP & Co.
• George Cigale. Chairman & CEO, Tutor.com Inc.
• David Hoverman, Senior Principal, Parthenon Group LLC
• Jeffrey Keith, Operating Partner, Sterling Partners
• Victor Klatt. Principal, Penn Hill Group
• Timothy B. Loomer. President & CEO, Campus Management Corp.
• Robert Lytle. Partner Parthenon, Group LLC
• Michael P. McQueeney, Managing Partner, Summer Street Capital Partners LLC
• H. John Michel. Partner, Drinker Biddle & Reath LLP
• Jason Palmer. Chief Product Officer, Straighterline
• Ralph Protsik, Managing Director, BSG Team Ventures
• John R. Przypyszny, Partner, Drinker Biddle & Reath LLP
• Robert T. Puopolo. Partner, Epic Partners
• Adarsh K. Sarma. Managing Director, Warburg Pincus LLC
• Joshua N. Schwartz, Managing Director, East Wind Advisors LLC
• Stuart J. Udell. President & CEO, Catapult Learning LLC
• Carol Vallone. Chief Executive Officer, Educate Online Inc.
• David L. Warnock, Managing Member, Camden Partners Holdings LLC
• Ralph A. Wolff, President, Western Association of Schools & Colleges

Additional speakers to be announced

And then there’s the “Business Plan Competition” being run by the Yale School of Management. The competition is said to be promoting “education entrepreneurship as a means of advancing education reform” by encouraging new ventures ‘for profit and nonprofit’ that work to close the achievement gap and raise student achievement.” The judges weren’t announced for this competition, but the 2012 judges are listed here, and while a few were former teachers, there wasn’t a single working teacher or principal or student representative among them.

Mission and Overview

The mission of the Yale SOM Education Business Plan Competition is to promote education entrepreneurship as a means of advancing education reform, specifically among graduate students who have a passion for education. The competition will focus on seed proposals rather than fully-developed businesses to encourage novel thought. Click here for a flyer outlining the competition.

The competition will be held in conjunction with the Yale SOM Education Leadership Conference (ELC), which will be held on April 5, 2013. Preliminary evaluation rounds will occur in advance of the spring conference. At the conference, finalists will present, a winning team will be announced, and $10,000 in prize money will be awarded. The top three finalists will receive prize money.

Competition Goals

1. Encourage graduate students to conceive of new ventures “ for profit and nonprofit“ that work to close the achievement gap and raise student achievement
2. Build a foundation of future entrepreneurs in education
3. Promote innovation and enterprise as a means of advancing education reform

Timeline for 2013 Competition

• Submissions due: January 21, 2013
• Candidates notified of progress to second round: February 25, 2013
• Finalists pitch and winner announced: April 5, 2013

Additional Information

Please see the following links for more specific information on:

Conflict of Interest Statement

Teams from any school are welcome to submit to the Yale SOM Education Business Plan Competition. Submissions will reviewed by independent judges without preference for specific schools. No additional information beyond the official submissions will be provided to the judges.