Target Information

Infinedi Partners, LP (“Infinedi”) has announced the acquisition of St. Mary’s Institute for Educational Excellence, also known as Atlantis, by its portfolio company, CEA CAPA Education Abroad (“CEA CAPA”). Founded in 2007, Atlantis stands as the premier provider of experiential education abroad for college and university students pursuing careers in fields such as medicine, law, and management consulting. Annually, Atlantis aids nearly 2,500 pre-professional students in gaining valuable real-world experience that is essential for graduate school applications and employment opportunities. The Company markets its programs through three distinct brands: Atlantis (focused on pre-med and pre-nursing), Lex Fellowship (targeted at pre-law students), and Beacon Fellowship (serving pre-consulting students).

CEA CAPA collaborates with over 350 U.S. universities to deliver comprehensive educational and internship programs abroad, specializing in regions such as Europe, Central and South America, and Australia. With 11 international study centers and partnerships with 45 universities worldwide, CEA CAPA serves more than 7,500 students each year. This acquisition follows Infinedi's prior acquisitions of CEA in August 2020 and CAPA in April 2021, demonstrating a strategic expansion in the field of education abroad.

Industry Overview in the U.S.

The education abroad industry in the United States has witnessed dynamic growth due to increasing interest among students for global learning experiences. As educational institutions adapt to the demands of a globalized workforce, experiential education programs that blend academic rigor with real-world practice have become highly valued. The desire for students to travel abroad and immerse themselves in different cultures has surged, leading to a proliferation of programs designed to meet these needs.

Specifically, the market for experiential education tailored to pre-professional tracks, such as medicine and law, has expanded significantly. Institutions are recognizing that hands-on experiences can substantially enhance the educational journey, equipping students with critical skills and insights that traditional classroom environments may lack. This shift not only supports student development but also increases a university’s appeal to prospective enrollees.

Furthermore, with a notable rise in mental health awareness and international networking importance, students are seeking holistic experiences that contribute to their personal and professional growth. Educational programs that provide opportunities to shadow professionals in their fields are particularly attractive, as they enable students to gain first-hand insight and experience.

This landscape positions CEA CAPA and Atlantis favorably for future growth, as they can leverage their combined expertise and extensive networks to enhance offerings and create unique educational experiences that cater to this emerging demand.

Rationale Behind the Deal

The acquisition of Atlantis aligns strategically with CEA CAPA's mission to broaden the scope and quality of its educational offerings. By incorporating Atlantis’ unique experiential education programs, CEA CAPA aims to bolster its portfolio and better address the needs of its university partners and their students. The move is expected to facilitate collaboration with universities to integrate shadowing opportunities into semester-long, for-credit study abroad programs, enhancing student engagement and outcomes.

This acquisition also represents a significant opportunity for CEA CAPA to expand its influence and reach within the pre-professional education sector, providing students with enriching experiences that enhance their qualifications and offer competitive advantages in the job market.

Information About the Investor

Infinedi Partners is a private equity firm dedicated to forging innovative partnerships with founder-owned businesses and financial entrepreneurs. Based in New York and established in March 2018 by Jay Hegenbart, Infinedi specializes in making control investments, often as the first private equity investor in target companies. With a focus on a lower middle market, the firm’s strategy emphasizes research-driven and industry-specific investments, employing less financial leverage and longer investment horizons compared to traditional private equity approaches.

The firm's investment philosophy is solution-oriented, collaborating closely with business owners to design customized investment strategies that maximize benefits for all involved. Notably, Infinedi’s portfolio includes significant reinvestment from company founders, which underscores their commitment to supporting and growing the businesses they acquire. Since its inception, Infinedi has developed relationships with a diverse range of institutional investors who have capitalized on the firm's remarkable track record of success.

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This acquisition by Infinedi, through CEA CAPA, is poised to be a favorable investment for several compelling reasons. Firstly, the integration of Atlantis into CEA CAPA's operations allows for the merging of robust educational frameworks, ultimately better serving students and universities alike. The growing demand for experiential learning is likely to drive increased enrollment across CEA CAPA’s programs, which can significantly enhance financial performance over time.

Additionally, the ability to offer unique shadowing opportunities enables CEA CAPA to differentiate itself in a competitive market, potentially attracting more university partnerships. These partnerships not only expand the company’s reach but also align with the desires of modern students seeking out practical experience while studying abroad.

Infinedi's strategic focus on founder-led businesses and control investments complements this acquisition further, as Atlantis already has a strong reputation and established relationships within the education abroad landscape. This foundation will facilitate smoother integration and greater operational efficiencies, ultimately benefiting all stakeholders.

In summary, the acquisition of Atlantis presents a significant growth opportunity for CEA CAPA and is consistent with Infinedi’s investment philosophy of fostering innovation within esteemed legacy firms. As the education abroad sector continues to evolve, this investment could yield positive outcomes for the involved parties and set the stage for future successes.

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