Education

Indian learning startup is envy of its class

11 July 2019

Byju’s fundraise values it at $5.7 bln, a 50% jump in seven months. A sturdy business model is why new backers include A-grade investors like Qatar. U.S. and British parents may spend proportionately less on education but that need not slow growth as the group expands overseas.

U.S. curb on China research runs technology risk

8 July 2019

The Trump administration is putting more Chinese universities on blacklists, making it risky for American entities to work with them. Concern about academic spying for Beijing is valid, but discouraging ties with a leader in fields like AI and biotech can hurt U.S. capabilities.

Canada’s student flat deal hedges its UK bets

3 July 2019

The Canada Pension Plan Investment Board has sold university housing player Liberty Living to Unite Group for 1.4 billion pounds. The seller’s small premium is offset by the buyer’s synergies. CPPIB gets to cash out, but a 20% stake creates upside if student inflows endure.

Schwarzman’s Oxford gift widens UK university gulf

19 June 2019

The Blackstone founder is giving 150 mln pounds to the 900-year-old institution for a humanities centre bearing his name. Oxford and other top universities already outspend less prestigious peers. Weaker players will have to borrow more to keep up, increasing their vulnerability.

Chinese vocational school IPO taps job anxiety

5 June 2019

China East Education has raised $625 mln in Hong Kong, valuing it at $3.1 bln. Beijing’s push to retrain millions of laid-off workers could boost its bottom line, but the market is fragmented, and earnings are volatile. This price implies very optimistic growth expectations.

Online tutor puts U.S. love of China IPOs to test

31 May 2019

Chinese companies have pitched themselves in New York as a bet on rising consumption, insulated from trade ructions. But poor performances of Luckin Coffee and others have tempered enthusiasm. That means even profitable ones like education upstart GSX may fail to make the grade.

Recess ends for China’s private-school startups

14 May 2019

Companies like $19 bln tutoring giant TAL have long benefited from foreign enthusiasm for Chinese education plays. Share performance, however, has been inconsistent. Demographic challenges, plus fresh policy headwinds in Beijing and Washington, put growth at risk.

Hadas: CEOs would benefit from more humanities

8 May 2019

Companies rely on science and engineering grads, especially in the Big Data era, but many tough problems are cultural and psychological. The best way to face them is with the liberal arts, which deal with grand dramas and complex conflicts. It's time to rethink C-suite education.

Cox: Emmanuel Macron is succumbing to shortcuts

24 April 2019

The French president’s plan to close ENA, the elite school that churns out civil servants and CEOs, smacks of symbolism. So does his pledge to fix Notre-Dame in five years. Reforming the economy, like rebuilding a great cathedral, demands tough choices, not political gimmicks.

Hadas: U.S. colleges can try harder to be fair

18 March 2019

Elite American higher education is supposed to be a meritocracy, but last week’s admissions-cheating revelations are a reminder of how much money matters. That could be changed, starting with choosing from qualified candidates by lottery and spinning off college sports teams.

College-bribe scandal is manna for progressives

13 March 2019

TPG’s Bill McGlashan and actor Felicity Huffman are among the big names charged in an alleged scam to get their kids into top U.S. universities. The admissions process is anyway tilted toward the rich. This case, and the entitlement on show, should put the whole system on trial.

University endowments are study in U.S. inequality

20 February 2019

With public funding for higher education waning, institutions depend on investments more than ever. Yet most have small endowments and lack access to areas like private equity. The likes of Harvard and Yale face new taxes and ebbing returns, but their riches can cushion the pain.

World will improve where it matters most in 2019

24 December 2018

By next December, more people will have electricity and clean water. Child deaths are likely to be rarer and education more common. In future years, the pace of gains could accelerate. The open question is whether progress will undermine prosperity by also bringing more conflict.

Byju’s educates startups in better business

20 December 2018

After raising fresh funds for overseas expansion, the Indian learning app is valued at $3.8 bln and growing fast despite pricey subscriptions. Success feeds off proud parents and lousy schools. On the verge of profit, Byju’s is a reminder that unicorns can grow without subsidies.

UK universities graduate to bailout candidates

1 November 2018

Tertiary education colleges across the UK are issuing more and more debt. The lack of an insolvency framework means any default would be messy, but lenders reckon the government would probably prevent a default. With demand for degrees waning, the bet may soon be tested.

Post-crisis Pearson now faces tougher growth test

17 October 2018

The education group’s U.S. textbook unit is no longer in freefall, and cost cuts mean profit should finally grow again. Yet with its shares above historical norms, Pearson’s much-touted digital-education model needs to bear fruit. There’s little sign of that so far.

Holding: Lawyers have a case for a free education

28 August 2018

NYU Medical School's new free-tuition policy allows graduates to avoid loans that keep many from entering low-paying yet vital fields. The logic could also work for the law. Relieved of debt, more legal eagles might choose public-interest work – to the benefit of U.S. justice.

College dorms play host to financial keg party

25 June 2018

Greystar is paying a reasonable-sounding $3.1 bln for Education Realty’s student-bunking business. The astronomical cost of college is prompting changes to the market, though, such as kids telecommuting to class. It could deprive university real estate of its youthful glow.

Chinese tutor’s short answer will be instructive

15 June 2018

Muddy Waters invoked Enron in its fraud accusations against $24 bln Tal Education. Complicated attacks can be hard for outsiders to parse, but corporate responses to bearish investors are often telling. China Internet Financial Services and AMD provide useful case studies.

Puerto Rico budget ignores the human element

27 April 2018

The bankrupt island’s federal oversight board certified plans that include cuts to pensions and other austerity measures. Some are in line with what Puerto Rico’s governor proposed. But they don’t adequately address the risk of yet more working-age people jumping ship.