Oakley Capital to extend partnership with IU Group

• Oakley’s continuation fund will acquire IU alongside Oakley Capital Fund V 
• Oakley’s partnership with IU Group began in 2017
• Oakley is an investor in the education sector that focuses on mid-market companies across Europe

Oakley Capital has raised a continuation fund to extend its partnership with IU Group, a private university group in Germany.

IU is based in Erfurt and provides flexible and affordable online learning to adults and high school leavers. The company is expected to deliver around €500 million in revenues in 2023.

Oakley’s continuation fund is backed by investors including TPG GP Solutions, HarbourVest Partners, Goldman Sachs Asset Management, Glendower Capital and Pantheon.

The continuation fund will acquire IU alongside Oakley Capital Fund V from Oakley Capital Fund III.

Oakley Capital Fund III will realise a gross return of 85 percent IRR on its exit subject to completion, according to a release.

“They have consistently delivered on their ambitious targets, improved student outcomes, innovating with AI driven delivery, and expanding into new verticals and geographies,” said Peter Dubens, Oakley Capital managing partner and co-founder.

Oakley’s partnership with IU Group and its senior management began with its investment back in 2017.

IU’s renewed partnership with Oakley will drive the next phase of IU’s growth, with continued growth in existing markets, accelerated internationalisation driven by organic growth and acquisitions in key geographies, the release added.

Oakley Capital, based in London, is an investor in the education sector that focuses on mid-market companies across Europe. The firm has reported gross realised returns of 4x MM and 67 percent IRR across all funds till date. It has assets worth €8 billion under management.

Lazard acted as sole financial advisor to Oakley Capital in connection with the transaction.