Archer Capital backs New Zealand education business

The new business - Aspire2 Group - aims to become the country's largest private provider of vocational education services to international students as well as a significant player in the domestic space and in safety and workplace communication training. Archer is funding Aspire2 alongside ASB Bank. No information has been given as to how much each party is contributing.

Ntec Tertiary Group New Zealand - a consortium comprising the National Technology Institute, Concordia Institute of Business, the College of Future Learning NZ, and the National Institute of Education - and Queens Academic Group make up the international division. The domestic division includes Solomon Group and Cornerstone, while business-to-business services are provided by Safety Action and to a certain extent Cornerstone.

Aspire2 currently has about 6,000 students, serves 7,000 clients through its Ministry of Social Development-funded youth services, and provides about 3,000 trainer days for B2B customers. The company receives approximately 35% of its revenue from the Tertiary Education Commission and the Ministry of Social Development.

Chief executive Sussan Turner, previously group CEO of MediaWorks NZ, told The Australian that the international division will look at expanding into new countries and also consider bolt-on acquisitions of complementary businesses in the tertiary education space.

Archer focuses on mid-market buyouts in Australia and New Zealand. The firm closed its fifth fund at A$1.5 billion (A$1.2 billion) in late 2011 but subsequently returned A$300 million in commitments to LPs due to slower than expected deployment. Recent investments include Dun & Bradstreet's Australia and New Zealand-based credit data business.

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• Topics
• Australasia
• Buyouts
• New Zealand
• Australia
• Archer Capital
• buyout
• Education