(Reuters) Advent International Corp and its FSG Brazilian education company, Centro Universitário da Serra Gaúcha, purchased Brazil’s Faculdade Cesuca university for an undisclosed price. Advent aims to make two other acquisitions of universities in 2017.
Advent since last year has controlled FSG, which is formally known as Centro Universitário da Serra Gaúcha. The acquisition of Cachoeirinha, Brazil-based Faculdade Cesuca will add 2,600 students to the company’s 11,000.
Advent Director Newton Maia said in an interview that FSG would probably make two other acquisitions of universities in 2017. The private equity firm is doing due diligence in one company in Brazil´s northeastern region, Maia said, declining to disclose its name.
Advent expects FSG to reach 20,000 students next year, Maia said. The firm was an early investor in Kroton Educacional SA (KROT3.SA), holding stakes in the world´s largest listed for-profit education company from 2009 to 2013, he said.
The move shows investors still see growth potential in for-profit education in Brazil, even as the country´s effort to rein in public budget deficits affects government-backed student loans. Brazil´s government recently announced new rules for student loan program Fies.