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UAE: Brookfield-led Consortium to invest in Dubai’s GEMS Education

Strategic Investment Deal Marks New Chapter for GEMS Education

Brookfield-Led Consortium to Invest in GEMS Education in Dubai

A consortium led by Brookfield Asset Management has entered into an agreement to make a strategic investment in GEMS Education, a prominent international education provider based in Dubai. This significant development was announced through a joint statement issued by the companies on Tuesday. While the exact financial details of the investment were not disclosed, it was confirmed that private equity firm CVC Capital Partners will substantially reduce its stake in GEMS as part of this transaction. CVC had originally acquired a 30% ownership stake in GEMS Education.

The completion of this transaction is anticipated in the third quarter of 2024, pending regulatory approvals and customary closing conditions. Alongside Brookfield Asset Management, the consortium includes Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan (SOFAZ), showcasing a diverse group of investors backing GEMS Education’s growth trajectory.

In preparation for this investment, GEMS Education has secured financing from a consortium of UAE banks. This financial arrangement is designed to facilitate the repayment of existing debts and to provide liquidity for future operational and growth initiatives.

Founded as a family business, GEMS Education has achieved substantial growth since its inception in 1959, starting from a single school and expanding to become a global education leader catering to 140,000 students across multiple countries. The company’s expansion strategy has been underscored by significant moves such as the 2019 acquisition of Ma’arif Education Group in Saudi Arabia, the largest education company in the kingdom. This acquisition has strengthened GEMS’ presence in the region and aligned with its commitment to enhancing educational opportunities.

The investment by Brookfield-led consortium reflects confidence in GEMS Education’s strategic direction and growth potential in the competitive education sector. By partnering with prominent global investors, GEMS aims to further enhance its educational offerings, expand its reach, and continue delivering quality education that meets international standards. This collaboration is expected to reinforce GEMS Education’s position as a leader in educational excellence across the Middle East and beyond, paving the way for future innovations and advancements in the field of education.

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