The Carlyle Group has exited its position in the Chinese subsidiary of Wall Street Institute, an English language school, via a sale to Pearson for $145 million.
Carlyle bought the company in 2005 for an undisclosed sum alongside co-investor Citi Private Equity. The deal was made via Carlyle Venture Partners II, a $600 million US growth capital fund.
“Wall Street Institute is a great example of the important role that growth equity can play in the global expansion of a company,” says Brooke Coburn, Carlyle managing director. “Since our investment, the company has grown revenue three-fold. Over the same period, the business has expanded dramatically in China, opening more than 25 new facilities in seven Chinese cities.”
Launched in 2000, Wall Street English teaches approximately 35,000 students at 39 company-owned training centres in seven cities including Beijing, Shanghai, Guangzhou and Shenzhen. It provides English language instruction and practice to university students and professionals through a blend of computer-based learning and face-to-face tutorials. Between 2006 and 2008 it achieved compound annual revenue growth of more than 40%, and expects to generate approximately $70 million in sales this year.
Utilising both company-owned and franchised centres, WSI has provided instruction to more than two million students in more than 400 centres in 28 countries in Africa, Asia, Europe, Latin America and the Middle East, the company said.
Carlyle Group has around $85.5 billion of assets under management committed to 66 funds.
D.C.