A consortium led by Canada’s Brookfield Asset Management has agreed to purchase a majority stake in GEMS Education from CVC Strategic Opportunities Fund I and Fund II and co-investors.

The agreement, announced Tuesday, has widespread real estate implications and is contingent upon certain closing conditions.

GEMS Education, founded by the Varkey family in 1959, has evolved into the world’s largest provider of private K-12 education, starting from its humble beginnings with a single school in Dubai. Over the past five years under CVC Consortium’s ownership, India-based GEMS Education has increasing student enrollment to approximately 140,000 from 125,000 despite challenges posed by the COVID-19 pandemic.

“We thank CVC for their support since 2019, helping GEMS navigate through the COVID pandemic and supporting management to bring GEMS to the strong position it is in today,” said Dino Varkey, Group CEO for GEMS.

CVC Strategic Opportunities Fund I and Fund II focus on investing in stable businesses within low-volatility sectors, often partnering with founding families or foundations seeking long-term collaboration.

The exact size of the Brookfield-led stake was not disclosed, but CVC had controlled a 30% interest in GMS, Reuters reported.

Other investors in the consortium include Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan (SOFAZ,), according to multiple reports.

CVC’s existing minority shareholders, including Malaysian sovereign wealth fund Khazah Nasional Berhad, will exit as part of the transaction, CVC announced.

The deal is expected to close in the third quarter of 2024. Toronto-based Brookfield ranks among the world’s largest institutional investment companies.

Image: GEMS Education