Private equity finds its next bet: college admissions
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Private equity firms are taking majority stakes in college entrance exam companies, causing concern among education advocates. ACT Inc., the nonprofit behind the ACT exam, has partnered with private equity firm Nexus Capital Management and will move its test into a for-profit company. The move is expected to bring cash infusion and opportunities for growth, but critics worry about decreased transparency in the testing process. Private equity-owned companies can obfuscate their operations and have control over the entire process, including curriculum development. The ACT will become a public benefit corporation, but critics remain skeptical. Private equity investment in education services has been increasing, as testing companies face financial losses and a decline in testing requirements by colleges. The College Board, which administers the SAT exam, has also seen a decrease in revenue and has partnered with a private equity-owned company. Education advocates call for government regulation and increased funding to address the issues with standardized testing.

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https://www.erienewsnow.com/story/50680457/private-equity-finds-its-next-bet-college-admissions