Crazy for education – Iberian Lawyer

Investor appetite for Spain’s education sector shows no signs of slowing down. Both domestic and international funds continue to lead increasingly sophisticated deals. We explore the legal challenges and key insights for the future with input from industry experts

Experts: Juan José Mallo, partner at Martínez-Echevarría; Miriam Pérez-Schafer, partner at Freshfields; Alberto Rodríguez, partner at Bird & Bird; and Óscar Murillo, partner at Martínez-Echevarría.

by ilaria iaquinta

The Spanish education sector is experiencing a wave of intense merger and acquisition (M&A) activity. The growing presence of private equity funds and large international investors has made education—particularly higher education and vocational training—one of the most dynamic areas of the market. Among the most notable transactions is the acquisition, announced in April 2024, of Universidad Europea de Madrid by EQT for €2.2 billion—one of the largest education-related deals ever seen in Spain. Earlier in January, Corporación Financiera Alba—the investment arm of the March Group—acquired an indirect stake of nearly 6% in Nord Anglia Education, in a transaction valued at around €583 million.

A few months prior, in July 2024, French investment fund Wendel agreed to invest approximately €625 million to acquire a 50% stake in Globeducate, a group valued at €2 billion and one of Europe’s largest private school operators. Alongside these headline-grabbing figures, there have also been smaller-scale moves, such as the €2 million acquisition of the historic Colegio San José de Campillos in April, and the transformation of the Instituto de Empresa (IE) into a fully-fledged private university.

The attractiveness of Spain’s private education sector is no coincidence. Its growing alignment with international programmes—such as the International Baccalaureate (IB)—and its ability to generate stable revenue streams have made it a prime target for investment capital. “The quality education sector in Spain, particularly the private one and that linked to international programmes like the IB, is extremely appealing to investors”, Juan José Mallo, partner at Martínez-Echevarría, tells Iberian Lawyer. “It offers high returns and is undergoing a clear process of consolidation”. However, Mallo notes, not all educational stages generate the same level of interest.

Early childhood education, for example, has lost appeal among investors due to the potential introduction of free provision in some regions. In contrast, primary, secondary and upper secondary education have become the main focus for private equity and industrial groups. Vocational training (Formación Profesional, or FP) is currently attracting the greatest interest, while universities and business schools round out the investment landscape—though these require constant capital injections and a high degree of specialisation.

REGULATORY CHALLENGES