Altamir - Registration Document 2016

1

FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company

www.inseec.com

1) Business description Groupe INSEEC is the leading for-profit post-secondary education provider in France. With the acquisition of the French activities of the US group Laureate in 2016, the INSEEC group now operates 17 schools in France (Paris, Bordeaux, Lyon and Chambery) and abroad (Monaco, London, Geneva, Chicago and Shanghai), for nearly 21,000 students. INSEEC offers a wide range of programmes ranging from preparation for entrance exams to doctoral degrees. Building on its French roots, the Group’s strategy is to develop world- class programmes and distinctive expertise in five domains of education: (i) Luxury and Hospitality, (ii) Wine and Spirits, (iii) Communication, Design andDigital Marketing, (iv) Engineering and (v) Online Executive Business Education. 2) Why did we invest? INSEEC is a leading for-profit post-secondaryeducationprovider in France with several key strengths vis-à-vis competitors: agility and innovation in programme development, sound governance, cost efficiency, marketing skills, attractive and multi-site campuses, programme diversity and no dependency on subsidies. Corporate governance is sound, and the group’s experienced CEO has a successful track record. Its Grande École programme is ranked among the top 25 business schools and contributes to brand building and other programmesviaahaloeffect.GroupeINSEECalsohasthreeother leading programmes (MSc, Sup de Pub andÉcole deCommerce Européenne), on top of recently acquired programmes, two business and one engineering (EBS, ESCE and École Centrale d’Électronique). Growing in volume and price, and ripe for consolidation, the for-profit higher education market is attractive and has strong market intrinsics: counter-cyclicality, barriers to entry, revenue visibility, no working capital needs, high profitability and high cash conversion. 3) How do we intend to create value? INSEEC intends to pursue its growth objectives. It will grow the existing core business by fostering further academic excellence and increasing the attractiveness of its schools and will expand market share through new programme offerings. Programmes are being internationalised and expanded to other countries

through newcampuses and exchange programmeswith foreign universities. INSEECalsoplans tocrystallise significant potential for synergies withLaureate’s Frenchoperations, and further optimise INSEEC’s existing cost structure. 4) What has been achieved? Since investment, the group has finished optimising its organisation and pursued its international expansion by acquiring CREA, a Geneva-based communications and design school, launching a luxury brand trainingprogramme inAsia and launching a new campus in San Francisco. In 2015, the Ministry of Higher Education granted a four-year renewal of INSEEC’s accreditation as a “Grande École”, which contributes to the school’s attractiveness. In July 2016, the group finalised the acquisition of the French subsidiaries of US group Laureate, nearly doubling in size as a result, and expanding its offerings for engineering training and online training for executive managers. This significant acquisition created the uncontested leader in post-secondary education with 17 schools and 21,000 students. 5) How is it performing? Three years after our investment, the company is performing in line with objectives. In the 2015-16 financial year (FYE 30 June 2016), Groupe INSEEC posted a 6% increase in revenue, to €91.6m, owing to new student enrollment, and a 16% increase in EBITDA compared with the previous year. During the first half of the 2016-17 financial year (July-December 2016), revenues stood at €69m, in line with the first half of last year. The Group is expected to generate double-digit EBITDA growth in FY2016-17 thanks to top-line growthwith September- October 2016 new enrollments up 7%, and significant synergies to be generated from new schools integration. The valuation of the investment in Groupe INSEEC grew by €12.4m during the 2016 financial year. 6) How will we crystallise value? The Group’s asset-light structure translates into a highly cash generative business model. It has significant potential for further growth via new programme offerings and international expansion, which should be very attractive for both financial and trade buyers.

Sector

Country

Date of investment

Residual cost in €m

Fair value in €m

% of the portfolio at fair value

France

2013

42.9

73.6

8.4

26 REGISTRATION DOCUMENT 1 ALTAMIR 2016

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