EQT to acquire IMG Academy for $1.25bn

July 2023 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2023 Issue

Creating a new global sports programme that highlights the importance of wellbeing, resilience, teamwork and leadership, Asian private equity (PE) firm BPEA EQT is to acquire sports education institution IMG Academy from Endeavor Group Holdings in an all-cash transaction valued at $1.25bn.

The all-cash transaction, done in partnership with the British provider of international schools Nord Anglia Education, is expected to close in the third quarter of 2023 and is subject to customary conditions and approvals.

Part of EQT, a purpose-driven global investment organisation in active ownership strategies, BPEA EQT combines the PE teams from Baring Private Equity Asia (BPEA) and EQT Asia, creating a comprehensive Asian PE presence with local teams in eight cities across the region.

BPEA EQT’s acquisition of IMG Academy underscores its commitment to developing leading educational platforms and helping them expand globally, for the benefit of students, parents and teachers.

Founded in 1978, IMG Academy provides a sports-focused boarding school, sports camps, online coaching and college recruiting, and is known for its strong outcomes from the Ivy League to professional leagues. Across its suite of sports education experiences, IMG Academy supports over 100,000 student athletes, and helped place 30,000 students onto college sports rosters in 2022 alone.

With Asia being IMG Academy’s largest source of international students, BPEA EQT and Nord Anglia plan to support its overseas expansion and leverage partnership opportunities between the two institutions, including integrating IMG Academy’s sports-focused education services into Nord Anglia’s curriculum global platform spanning 33 countries

“We are deeply impressed by IMG Academy’s unique offering and its world-class sports and wellbeing curriculum,” said Jack Hennessy, partner and co-head of education at BPEA EQT. “IMG Academy’s brand is globally recognised, and we see compelling opportunities in supporting its international expansion, including Asia, and broadening its educational offering, leveraging BPEA EQT’s insights from having led Nord Anglia Education’s growth in the region.”

In addition to BPEA EQT, EQT’s strategies in the Asian region include EQT Infrastructure and the real estate division, EQT Exeter.

“Our purpose is to empower student-athletes to win their future, preparing them for college and for life,” said Brent Richard, president of IMG Academy. “We are constantly trying to raise the bar in pursuit of that purpose through our on-campus and online experiences. Simultaneously, our staff is passionate about growing the impact we have on the world, reaching more families, and helping them on their journey. BPEA EQT and Nord Anglia are ideal partners to achieve and accelerate those goals, and we are excited for that future.”

Financial and tax adviser to BPEA EQT was Deloitte, with Oliver Wyman acting as commercial adviser and Ropes & Gray as legal adviser.

With this transaction, BPEA Private Equity Fund VIII is expected to be 20-25 percent invested (including closed or signed investments, announced public offers, if applicable, and less any expected syndication).

Andrew Fitzmaurice, chief executive of Nord Anglia Education, concluded: “Our partnership with IMG Academy will create an exciting new global sports programme offering outstanding experiences for our students that bring to life the importance of wellbeing, resilience, teamwork and leadership.”

Fraser Tennant