Brookfield-led group invests in GEMS Education, with CVC Capital exiting stake; other investors include Gulf Islamic Investments

Brookfield Asset Management, a global leader in alternative asset management, has spearheaded a consortium to invest in GEMS Education, a prominent international education provider based in Dubai. This move marks a significant development in the education sector, reflecting strategic investment interest and financial restructuring efforts within GEMS Education.

The consortium led by Brookfield includes several notable investors. CVC Capital Partners, which previously held a stake in GEMS Education, has exited its investment as part of this transaction. Gulf Islamic Investments (GII), Marathon Asset Management, and SOFAZ (State Oil Fund of Azerbaijan Republic) are among the other investors participating in this investment round.

The primary objective of this investment is to support GEMS Education in its growth initiatives and financial stability. GEMS Education operates a network of schools across several countries, offering a diverse range of educational programs from kindergarten to secondary levels. The investment from Brookfield-led consortium is expected to provide capital for expansion, improvement of educational offerings, and overall operational enhancements.

In addition to equity investment, financing has been secured from UAE banks to facilitate debt repayment by GEMS Education. This financial restructuring aims to optimize the company’s balance sheet and strengthen its financial position, enabling it to navigate challenges and capitalize on growth opportunities in the education sector.

For Brookfield Asset Management, investing in GEMS Education aligns with its strategy of backing high-quality businesses with potential for long-term growth and value creation. Education, as a sector, holds promise due to increasing global demand for quality education and evolving trends in learning methodologies and technology integration.

GEMS Education, under new investment and financial restructuring, can leverage its enhanced financial resources to innovate in education delivery, expand its footprint in existing and new markets, and strengthen its competitive position globally. This strategic partnership with Brookfield and other investors underscores confidence in GEMS Education’s business model and growth prospects.

The transaction also highlights the attractiveness of the UAE as a hub for education investments, driven by its strategic location, supportive regulatory environment, and growing population with a strong emphasis on education quality.

Overall, the investment by the Brookfield-led consortium in GEMS Education represents a significant milestone in the evolution of the education sector in the UAE and globally. It positions GEMS Education for sustainable growth and reinforces its commitment to delivering high-quality education and fostering student success across its network of schools.