South Africa: RMB Corvest in education deal
RMB Corvest, in direct partnership with Umoya Capital Partners, has recently acquired an interest in SANTS Private Higher Education Institution (SANTS).
SANTS was established in 1997 and has evolved into a further education and training service provider, focusing on early childhood development and continuing teacher development programmes. In 2012, SANTS registered with the Department of Education and Training (DHET) as a distance tertiary education provider focusing on initial teacher education (ITE) programmes, offering a diploma in grade R teaching, a bachelor of education in foundation phase and a bachelor of education in intermediate phase. Since establishment, SANTS has presented various programmes and qualifications to more than 40,000 educators in South Africa.
RMB Corvest and Umoya have jointly acquired a significant minority stake in the business.
“Understanding the ethos of entrepreneurial ownership, we value this type of investment. Partnering with current management who have a thorough understanding of the business and seek continued, organic growth through a long-term partnership resonates with us,” says Matsebe Thulare, an executive at RMB Corvest.
There’s a notable inclination among recent school graduates to chase teaching qualifications. The appealing job prospects, diverse subjects in the curriculums, and the potential for social impact make it a desirable career route. In 2023, South African public universities saw an estimated 4.2 million applications, with only around 163,000 first-year places available in all programmes. Given the evident capacity and funding constraints at public institutions, there’s a strong argument for the significance and growth potential of teacher-focused private higher education institutions, such as SANTS.
“Our business is underpinned by our current degrees and programmes, with clear additional growth avenues for us,” says Jaco Bernard, managing director of SANTS. “We continue to deliver quality teacher education with each programme addressing the needs of the diverse South African education system. Our new private equity partners have experience in the education sector and this will be an advantage for us – leveraging their skills and knowledge.”
“The programmes focus on quality at an appropriate cost, with an emphasis on ease of access and customer service for potential educators, providing the foundation for continued future growth,” adds Geoff Wilmot, an executive at RMB Corvest. “This, together with the business’ nuanced approach to language, provides for a business well suited to the South African context. All considered, an exciting partnership for us.”
* Subscribe to Africa Private Equity News’ monthly Dealmaker’s Log for a database of the reported investment deals, exits and fundraising closes. Click here for more information.