Strategic report / Sector review: Education

Education portfolio

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OCI valuation
IU Group

£110.8m

IU Group

The largest university group in Germany.

IU Group continued to perform well in the 12 months to December 2025, reporting revenue slightly above prior year and adjusted EBITDA growth of 5% versus prior year. IU continues to invest in maintaining its superior quality and student outcomes across all formats, supported by its proprietary AI technology. At the same time, IU Group has expanded its lecturer base to support an increased student demand for in-person teaching in its On-Campus business. Further, the Academy business continued to deliver double-digit growth with strong profitability.

K12 Investments

K12 Investments consists of Oakley’s investments in Thomas’s and Affinitas, which both continue to operate as entirely independent platforms.

For the 12-month period to December 2025, Oakley’s two K12 Investments delivered pro forma revenue and adjusted EBITDA growth of 5% and 22% respectively versus prior year. In June-September, Affinitas signed the acquisition of three new schools, further expanding its presence across Europe and the Americas. In September, Affinitas appointed a new CEO, Thomas Rajzbaum, who was previously a partner at EQT. Thomas brings more than 20 years of leadership experience across Europe, where he has successfully supported the growth and transformation of international companies across a number of different sectors. In September 2025, Thomas’s College welcomed its first cohort of students to the new senior school located at Richmond Hill. In November 2025, Thomas’s Kensington opened the doors to its new premises in St Albans Grove.

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OCI valuation
K12 Investments

£80.2m

OCI valuation
Bright Stars

£72.6m

Bright Stars

A leading independent group of premium nurseries, providing pre-school childcare.

In the 12 months to December 2025, Bright Stars delivered revenue and EBITDA growth of 23.8% and 24.4% respectively versus prior year. Bright Stars has now acquired 95 nurseries since Oakley’s initial investment in 2021, which puts it well ahead of the original target. During the year, Bright Stars acquired 22 new sites. Bright Stars 2025 performance has been one of the biggest drivers of OCI’s NAV growth, contributing 9 pence.

ACE Education (‘ACE’)

A leading higher education platform focused on sports management, design, fashion and hospitality.

In the 12 months to December 2025, trading was impacted by softer enrolments in the FY24/25 and FY25/26 academic years, mainly as a result of a contraction of the apprentissage part of the market, which represents about a third of ACE’s business. In response to these challenges, ACE has strengthened its leadership team with the appointment of a new Group President, who brings strong sector credentials as well as multi-site operating expertise. Management has been focused on delivering cost efficiencies across the workforce and footprint, while preserving quality of education and experience of the students to ensure future growth. The existing situation has been putting pressure on the business’s liquidity; this is being alleviated by a renegotiation of the existing debt agreement, which is to be concluded in Q1 26.