Business
Private equitys next focus: college admissions
Last Updated on April 18, 2024 by Robert C. Hoopes
Struggling ACT Inc. to Receive Investment from Private Equity Firm Nexus Capital Management
ACT Inc., the nonprofit organization known for the ACT college entrance exam, has been facing financial difficulties in recent years, reporting net losses for the fiscal years 2020, 2021, and 2022. In an effort to turn their financial situation around, ACT Inc. has announced that private equity firm Nexus Capital Management will be investing in the organization and taking a majority stake.
While ACT Inc. is optimistic about the partnership with Nexus Capital Management and believes it will help them expand and enhance their services beyond testing, some education advocates have expressed concerns about the potential impact on the transparency of the testing process with the involvement of private equity firms. Critics are skeptical of private equity firms being involved in education testing, citing worries about the commercialization of standardized tests.
The College Board, which administers the SAT exam, has also seen revenue declines and has administered the SAT exam through private equity-owned Cambium. This trend of private equity involvement in education testing has raised questions and led to a debate within the education community about the future of standardized testing.
In other news, Federal Reserve Chair Jerome Powell has indicated that there likely won’t be a rate cut at the upcoming policy meeting, keeping interest rates higher for longer. This news comes amidst economic uncertainties and speculation about the Fed’s future monetary policy decisions.
Furthermore, United Airlines has reported a $200 million financial hit due to the grounding of Boeing 737 Max 9 planes following quality issues. The airline is among several carriers affected by the grounding of the planes and is working to address the financial impact of the situation.
