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Spring Education Group (SEG), is a for-profit private school company based in
Saratoga, California Saratoga is a city in Santa Clara County, California, United States. Located in Silicon Valley, in the southern Bay Area, it had a population of 31,051 at the 2020 United States census, 2020 census. Saratoga is known for its wineries, restaurant ...
. It is majority-owned by
Primavera Capital Group Primavera Capital Group (Primavera; ) is a Chinese investment firm with offices in Hong Kong, Beijing, Silicon Valley and Singapore. It is considered one of China's leading investment firms with notable investments in companies such as Alibaba, ...
, a Chinese-based investment group. SEG's CEO is Michael Collins. Spring Education Group has a network of schools in 19 states and a presence in Asia. The organization has three divisions: over 100 early childhood education centers; a K-12 division including elementary, middle, and high schools; and an online school.


History

In 2017 SEG purchased Stratford Schools, which operates pre-k through 8th grade schools in California, for $500 million in a
leveraged buyout A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of t ...
using $220 million in loans from
Macquarie Group Macquarie Group Limited (), more commonly known as Macquarie Bank, is an Australian multinational investment banking and financial services group headquartered in Sydney and listed on the ASX (). Macquarie's investment banking division is Au ...
. Stratford was previously owned by
Warburg Pincus Warburg Pincus LLC is a global private equity firm, headquartered in New York City, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. As of April 2024 the f ...
, a private equity group.


BASIS Independent Schools

In April 2019 SEG purchased the five BASIS Independent Schools based in California, New York City, Washington, and Virginia. School tuition was approximately $32,000 per year.


Nobel Learning

In 2018, SEG and China-based
Primavera Capital Group Primavera Capital Group (Primavera; ) is a Chinese investment firm with offices in Hong Kong, Beijing, Silicon Valley and Singapore. It is considered one of China's leading investment firms with notable investments in companies such as Alibaba, ...
purchased Nobel Learning Communities from
Investcorp Investcorp is a global manager of alternative investment products, for private and institutional clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, ...
. At the time, Nobel had 25,000 students at 190 schools in 19 states. It was founded in 1983 and purchased by Investcorp and Bahrain's
Mumtalakat Holding Company Bahrain Mumtalakat Holding Company B.S.C. (Mumtalakat) is the sovereign wealth fund of the Kingdom of Bahrain. It was established by Royal Decree in 2006 and is wholly owned by the Government. Mumtalakat actively sought investment opportunities l ...
(from
Leeds Equity Partners Leeds Equity Partners is a private equity firm focused on investments in the Knowledge Industries. The firm is investing its seventh private equity fund, Leeds Equity Partners VII, L.P., the largest fund focused exclusively on investing in this s ...
) in 2015. Nobel is based in
West Chester, Pennsylvania West Chester is a borough (Pennsylvania), borough and the county seat of Chester County, Pennsylvania, United States. Located in the Delaware Valley, Philadelphia metropolitan area, the borough had a population of 18,671 at the 2020 census. West ...
and was listed on
NASDAQ The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list ...
as NLCI. In 2010 their gross revenue was $232 million, with $29 million gross profit, and costs including total personnel costs of $112 million, rent-related costs $59 million, and school operations of $32 million. In 2006 Nobel's gross revenue was $160 million (with $23 million gross profit). In 2010 Nobel purchased an online K-12 private school,
Laurel Springs School Laurel Springs School is a WASC-accredited K–12 distance learning private school in Ojai, California, United States. Laurel Springs School offers personalized resources, customizable curricula, individualized teacher services, college adv ...
, based in
Ojai, California Ojai ( ; Chumashan languages, Chumash: ''’Awhaỳ'') is a city in Ventura County, California. Located in the Ojai Valley, it is northwest of Los Angeles and east of Santa Barbara, California, Santa Barbara. The valley is part of the east– ...
, for $13 million. It was founded in 1994 and accredited by
Western Association of Schools and Colleges The Western Association of Schools and Colleges (WASC ( )) provided accreditation of public and private universities, colleges, secondary and elementary schools in California and Hawaii, the territories of Guam, American Samoa and Northern ...
in 2000. In 2010 the school's gross revenue was $6.7 million, with personnel costs of $1.5 million. Nobel also operated Paladin Academy in Florida. The school was closed by Spring Education Group in 2021. Other schools operated and trademarked by Nobel include Camelback Desert Schools, Chesterbrook Academy, Discovery Isle Child Development Center, Enchanted Care Learning Center, Merryhill School, Southern Highlands Preparatory School and The Honor Roll School.


Impact of the Covid-19 Pandemic

On March 20, 2020, a worker at Touchstone Preschool in
Hillsboro, Oregon Hillsboro ( ) is a city in the U.S. state of Oregon and is the county seat of Washington County, Oregon, Washington County. Situated in the Tualatin Valley on the west side of the Portland metropolitan area, the city hosts many High tech, high-te ...
, operated by SEG, tested positive for
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by the coronavirus SARS-CoV-2. In January 2020, the disease spread worldwide, resulting in the COVID-19 pandemic. The symptoms of COVID‑19 can vary but often include fever ...
. The preschool was closed for a deep cleaning and planned to remain closed for 14 days. After 34 years in operation, a Merryhill preschool permanently closed for economic reasons in May 2020 in
Modesto, California Modesto ( ; ) is the county seat and largest city of Stanislaus County, California, United States. With a population of 218,069 according to 2022 United States Census Bureau, U.S. Census Bureau estimates, it is the List of cities and towns in Ca ...
. Its financial standing had been made worse due to COVID-19 closures. It had leased space from
Tenet Healthcare Tenet Healthcare Corporation is an American for-profit multinational healthcare services company based in Dallas, Texas. Through its brands, subsidiaries, joint ventures, and partnerships, including United Surgical Partners International (US ...
. The temporary pandemic closures, making SEG's
Debt-to-income ratio In the consumer mortgage industry, debt-to-income ratio (DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. (Speaking precisely, DTIs often cover more than just debts; they can include principal, taxes, fees ...
worse, caused
Moody's Investors Service Moody's Ratings, previously and still legally known as Moody's Investors Service and often referred to as Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its histo ...
to change their
credit rating A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government). It is the practice of predicting or forecasting the ability of a supposed debtor to pay back the debt or default. The ...
for SEG from "stable" to "negative". In November 2020, SEG's credit rating increased back to "stable." Approximately 21 preschools were closed by Spring Education Group in December 2020. At the time indicated as temporary, many have since become permanent. 38% of the company's schools in Florida, including Chesterbrook Academy and Paladin Academy ceased operations by June 2021.


Controversies and Public Response


Americans with Disabilities Act lawsuit (2009)

On April 29, 2009, Nobel was sued in the Eastern District of Pennsylvania US District Court by the Disability Rights Section of the Civil Rights Division of the US DOJ for violating Title III of the Americans with Disabilities Act of 1990 by excluding children with disabilities from its schools and programs.


Concerns about BASIS Independent Schools acquisition

In 2019, 190 parents at the pre-K-12 school in
Red Hook, Brooklyn Red Hook is a neighborhood in western Brooklyn, New York City, United States, within the area once known as South Brooklyn. It is located on a peninsula projecting into the Upper New York Bay and is bounded by the Gowanus Expressway and the Ca ...
(opened 2014) and the pre-K-8 school in Manhattan (opened 2017) wrote a letter with concerns that BASIS was now owned by a Chinese-based private equity group.


Florida voucher program dispute

In September 2023, Florida governor
Ron DeSantis Ronald Dion DeSantis (; born September 14, 1978) is an American politician, attorney, and former United States Navy, naval officer serving as the 46th List of governors of Florida, governor of Florida since 2019. A member of the Republican Pa ...
announced that voucher programs for four private schools owned by Spring Education Group would be ended due to alleged ties to the
Chinese Communist Party The Communist Party of China (CPC), also translated into English as Chinese Communist Party (CCP), is the founding and One-party state, sole ruling party of the People's Republic of China (PRC). Founded in 1921, the CCP emerged victorious in the ...
(CCP) via its majority owner, Primavera Capital Group and its CEO Fred Hu. Fred Hu denied any membership in the CCP.


Notable schools

Other notable schools operated by SEG include: *
Sagemont School Sagemont Preparatory School is a private preparatory school in Weston, Florida, United States, operated by the for-profit Spring Education Group. Overview Sagemont Preparatory School operates two campuses in Weston. Sagemont Preparatory Lower C ...


References


External links

* {{official website Private schools in the United States Saratoga, California