Europe's largest for-profit higher education group has expressed interest in acquiring financially troubled British universities, asserting that private capital can help transform the struggling UK higher education sector.

Camil Sénégue, CEO of the Paris-based Galileo Global Education, stated that Britain is a highly attractive long-term investment market for universities, and he is currently negotiating several potential acquisition deals. The number of for-profit universities in the UK is very limited. Sénégue acknowledged that skepticism towards the for-profit model is widespread across most of Europe, which is a hurdle the group must overcome. However, he believes that private capital has a stronger capacity for sustained investment compared to financially constrained public systems.

Galileo Global Education is co-owned by the Béttencourt family and the Canada Pension Plan Investment Board (CPPIB). Since its founding 15 years ago, the group has established 130 campuses across 20 countries, with a total of 300,000 students enrolled. Sénégue stated, "We are a for-profit institution, and we don't shy away from it." However, the group has never paid dividends, and he emphasized a fundamental difference between Galileo's long-term capital operation model and the prevalent franchise model in the UK higher education sector.

Recent research indicates that one in ten full-time undergraduate students in England now attends a for-profit franchise institution. These institutions provide teaching, while traditional universities award degrees and take a share of the tuition fees. The largest of these, the Global Banking School, is now the highest-recruiting body for full-time undergraduates in England. Sénégue stressed, "Degrees are not for sale," adding that the franchise model can be either very tightly controlled or carry significant risks regarding teaching quality and student outcomes.

The rapid expansion of the franchise model is driven by increasing financial pressure on UK universities. Tuition fee increases have not kept pace with rising costs, and the government has tightened controls on recruiting high-profit international students. Over 40% of universities in England are forecasting a budget deficit this year. Sénégue stated, "We remain open, building various channels of communication, and proactively reaching out to institutions." He noted that the group's M&A team is constantly busy, actively screening potential acquisition targets, but declined to name the institutions currently under discussion, as deals have not yet progressed to deep negotiations. He also emphasized that the acquisition interest is not merely theoretical.

However, Sénégue disagreed with the notion of "buying the dip" during a crisis. He said the group aims to replicate the turnaround of Regent's University London, which was acquired after facing financial difficulties in 2020 with only 2,500 students. He stated, "I believe our operations at Regent's University London have been very successful, and we would be happy to replicate that model. Therefore, we are willing to pursue more acquisitions in the UK market." While Sénégue described the current situation for UK universities as "tense and difficult," he is optimistic about the long-term potential of UK higher education. "If you want to be in the top four markets for international students, the UK is unavoidable," he said. "Betting on the UK is our strategic consideration... As long as you have a long-term vision, you will find it a very attractive market."

Data from UNICEF shows that in some Latin American countries, about half of all students attend for-profit private universities, whereas in Europe, 85% of students are enrolled in public institutions. Sénégue stated, "Some markets are still debating the legitimacy of the for-profit model, and this kind of prejudice is an obstacle we need to overcome."

Professor Geoff Smith, Vice-Chancellor of Regent's University London, said that since joining the Galileo group, the university has established a clear system for prioritizing resources and controlling costs, a management model that other universities could learn from. "Many institutions are struggling, but surprisingly few are willing to consider private capital involvement," he said. "Operationally, we now have more financial flexibility and can invest resources to truly focus on improving student quality." Professor Smith believes that many UK universities are still relying on the reputation of being established brands. He stated, "Almost all universities are in trouble now, but few have faced the fundamental challenges to their own survival as we did."