Anima Growth

completed

Founded in 2003, GAEC Educação S.A. (also known as “Anima” or the “company”) is a publicly-listed Brazilian education company that operates private universities, executive education, and distance learning in various segments and regions of the national market. Its geographic focus for on-campus education is southeastern Brazil, principally the states of São Paulo and Minas Gerais, but some of its businesses and products are national in nature. As of August 2015, it had 16 campuses under different brand names in different cities serving approximately 86,000 students. Their higher education brands are UNA, UniBH, Unimonte, and Universidade São Judas Tadeu. In addition, Anima provides continuing and executive training through its brand HSM, and it is starting its distance learning programs under the brand UNA Virtual, already serving 384 students as of June 2015. Its university-level education is geared toward lower-middle to middle-income students, who are often the first in their families to study at the tertiary level. Most of these students attend Anima’s institutions while also working. At appraisal, the company had more than 5,800 full-time employees, 635 short-term teaching staff on part-time contracts (for post-graduate or executive education courses), and approximately 125 reception and unarmed guard staff working at Universidade São Judas Tadeu. Publicly listed as of October 2013, the company’s shareholders include the founding group of investor-managers, other executives, and investors such as Instituto Península and IFC. (IFC entered Anima’s shareholding structure at the company’s initial public offering. Refer to project No. 34325, Anima Equity, for more information. Due to some shortcomings in Anima’s completion of the Environmental and Social Action Plan under that investment, the client’s performance has been considered partly unsatisfactory to date.) IFC''s proposed investment in this transaction is an A loan of $50 million and a B loan of up to $50 million to finance the company’s expansion plans, including potential establishment of new campuses and/or acquisition of existing education companies.