Could universities be sold off? After months of speculation, the College of Law was sold last week to a private equity firm with no experience of education. At first sight, it seems a mere footnote to the main fees and funding story dominating UK higher education. But the sale to Montagu Private Equity, for around £200m, is being seen as a possible model for growing involvement in higher education by for-profit companies. While legal and education policy experts think it unlikely that private companies will take over traditional universities entirely in the near future – Russian oligarchs won't be getting their hands on Cambridge quite yet – they do foresee some university activities soon being financed with private cash. Robin Middlehurst, co-author of two recent reports on private involvement in higher education, says: "I'm sure that, as public funding goes down, publicly funded institutions will … look to issue bonds and have some kind of different private financing.
Private equity firm buys degree-awarding powers. The charitable College of Law, one of only five private providers in the UK with degree-awarding powers, has been sold to a private for-profit firm. The sale of the college – to Montagu Private Equity – is viewed by some in the sector as establishing a model for the potential sale of universities, in whole or part, to for-profit buyers. Like many universities, the College of Law is a charity with a Royal Charter. The college will sell its legal education and training business, setting up a separate foundation with the proceeds – which will retain the charitable status and the Royal Charter. Montagu will hold the degree awarding powers and run the college as a for-profit entity. “Montagu’s investment will give the College of Law the freedom and support to continue to build its position as a leading professional legal education institution in the UK and internationally.” Montagu said it was “supporting the existing management team, led by Nigel Savage, and staff of the college”.
Montagu Private Equity. Private equity firm buys right to sell university degrees | Aberdeen UCU | The University of Aberdeen. UCU: Private equity firm buys right to sell university degrees. Website URL : 17 April 2012 UCU today said the government needed to act urgently to protect UK universities and public assets from private equity firms after the College Of Law was sold off to Montagu Private Equity. The union warned that the sale of the charitable College of Law - one of only five private providers in the UK with degree-awarding powers - could see more private equity firms move in and attempt to purchase UK universities.
UCU said the government needed to ensure that there was clear legislation that would protect public assets in any moves from private equity firms to acquire all or parts of universities. UCU general secretary, Sally Hunt, said: 'It is no secret that private equity firms are circling UK higher education. UCU: Private equity firm buys right to sell university degrees. College of Law sale sets legal precedent for raising of funds. QAA agrees that degree-awarding powers will move with institution. John Morgan reports Credit: Alamy Law unto itself: the private equity firm Montagu's £200m acquisition of the College of Law is to include its degree-awarding powers The private equity buyer of the charitable College of Law will own the institution "with its attached degree-awarding powers", according to the UK's standards watchdog, while the model used in the sale "can be used by all UK universities" to attract private investment, a legal expert has said.
The statement from the Quality Assurance Agency came after last week's announcement of the private college's £200 million conditional sale to Montagu Private Equity and amid debate over the future status of its coveted degree-awarding powers. The Privy Council grants degree-awarding powers, on which the QAA takes an advisory role. "However, the powers stay with the college; they are not transferred to the new owner. " 'In the charity's best interests' Montagu Private Equity. News | Governors of The College of Law announce conclusion of Strategic Review. Following a comprehensive Strategic Review, the Governors of The College of Law ("College") today announce that the College's legal education and training business will be separated from its on-going charitable activities. The Governors have agreed the sale of the legal education and training business, which will continue to be known as The College of Law, to the leading European private equity firm Montagu Private Equity ("Montagu") under the terms of a conditional agreement.
The proceeds of the sale will contribute to a significant fund, in excess of £200million with which the charity - set to be renamed The Legal Education Foundation - will further its charitable object to promote the advancement of legal education and the study of law for future generations of students through bursaries, scholarships and grants. The Legal Education Foundation will be one of the largest independent educational charities in the UK. Nigel Savage, CEO of The College of Law, said: Back to top. Montagu: Governors of The College of Law announce conclusion of Strategic Review. College/University of Law. JMorganTHE : University of Law says its... New universities: will the public good yield to private profit? | Andrew McGettigan. The College of Law's Moorgate centre in London. Photograph: Chris Batson / Alamy The announcement this week of 10 new universities has been spun by David Willetts, the universities minister, as the "single biggest creation of universities since 1992".
Yet these small and specialist institutions, including the venerable Royal Agricultural College and Norwich University College of the Arts, already held the power to award degrees, received public funding and were "university colleges". Willetts's claim that "more people will now realise their ambition of going to a university" is therefore overblown. Life continues much as before for students and staff.
The true significance of creating new universities lies elsewhere. The government desires a more diverse body of institutions providing more choice for would-be students. There are now some 100 universities in England, and 159 UK institutions with the power to award full undergraduate degrees. BBC: Private equity firm buys College of Law. 17 April 2012Last updated at 11:46 ET By Sean Coughlan BBC News education correspondent The government wants to promote more of a market in the UK's higher education sector A private equity firm has bought a UK college with its own degree-awarding powers - in a groundbreaking deal for the UK's higher education sector.
The College of Law has been bought by Montagu Private Equity for an amount approaching £200m. The college, set up as a charity, provides law courses in London and in other regional centres in England. Nigel Savage, the college's chief executive, welcomed the takeover by this "well-resourced partner". The UCU lecturers' union called on the government to "act urgently to protect" the higher education sector from such private equity buy-outs. There had been earlier speculation that an established education firm would want to buy the college - as a way of establishing a bridgehead into the higher education market.
Higher purchase Continue reading the main story “Start Quote. £8m bursaries bonanza on the cards post-CoL sale. With a potential £200m sale of the College of Law (CoL) on the horizon, it is understood plans are being formulated that would see between £7m and £8m in bursaries becoming available for law students every year. Since the sale was first mooted, commentators have speculated on the difficulties for the sale provoked by the charitable status of the CoL and what the proceeds could be used for. It is now understood that a likely option for the sale would be to follow a model similar to that seen in the pharmaceutical industry with the split between the Wellcome Trust and what is now GlaxoSmithKline. Under that model the business would split from the charity, with the proceeds of the sale put into a charitable foundation that would use the investment to pursue the foundation’s charitable objectives and purposes by providing hundreds of bursaries.
The CoL already funds the Pathways to Law initiative, which focuses on state school pupils, and the Legal Services Policy Institute. College of Law sale prompts call for private equity veto. The government is being urged to prevent universities being bought by private equity firms after the College of Law, a charity that provides teaches law courses in London and six other cities across England, was sold to a private equity firm for £200m. The college's legal education and training businesses will be separated from its charitable activities after the governors agreed a sale to Montagu Private Equity, whose other recent investments include Emitel, the Polish terrestrial TV and radio broadcasting operator. Montagu, which was founded in 1968 and has six European offices, has assets worth €4bn under management.
The College of Law, which was set up as a charity in 1962, is one of five private higher education institutions in the UK with degree-awarding powers. The proceeds of the sale will contribute to a fund worth more than £200m through which the charity – set to be renamed the Legal Education Foundation – will hand out bursaries, scholarships and grants for law students. 2012-Sir Tim Wilson's review of university-business collaboration welcomed. 28 February 2012 HEFCE welcomes the review and looks forward to joining the debate about its findings. The review highlights a significant improvement in the level and quality of business-university collaboration during the last decade, including how the Government's long-term commitment to Higher Education Innovation Funding (HEIF) through HEFCE has helped to embed knowledge exchange with business as a core mission for higher education (HE) in England. As the review acknowledges, universities and business now face new challenges due to the wider economic climate and the Government's reforms to HE funding.
HEFCE's funding and information will play a key role in supporting universities and their graduates to drive economic growth. Review of Business-University Collaboration web-site. It's about more than sandwich degrees: reacting to the Wilson Review | Higher Education Network | Guardian Professional. Sir Tim Wilson's review of business-university collaboration is out and most of the Twitter chatter (including mine) has been around employability, sandwich courses (we need a new name), internships and business-funded students. But the report is wide-ranging and focuses on some difficult issues concerning innovation and economic growth that matter just as much as the student agenda. Wilson points to the galvanising role of universities in knowledge-based economies and makes some important recommendations.
He wants to encourage the Technology Strategy Board to scope and support future Catapults (still can't get used to that particular bit of branding flummery), the potential of local enterprise partnerships in supporting regional innovation, simplifying planning and tax around science parks to encourage indigenous and foreign investment, and the reintroduction of innovation vouchers as entry level tickets to university collaboration.
Open collaboration and innovation is tough stuff. Sir Tim Wilson, the Wilson Review and the University of Huddersfield. Business-University Collaboration Review | www.sciencecouncil.org. Sir Tim Wilson's Review of Business-University Collaboration is published 28th February 2012. Sir Tim Wilson, former vice-chancellor of the University of Hertfordshire and HEFCE board member, was asked by the Government to undertake a review into how universities work with business to ensure graduate skills and employability meet the needs of business and to improve collaboration on business led research and innovation. The published review recognises both the wide ranging potential for university-business interactions and the huge diversity in the university sector.
Many of his recommendations reflect the changing nature of UK businesses, and in particular the globally competitive innovation sectors. The Science Council has a strong interest in both the role of universities in research and as developers of the graduate and post-graduate talent that will drive forward the UK economy. Montagu directors hold Law's academic reins. The private equity firm that owns the UK’s first for-profit university will have a say in controlling the institution’s academic authority.
Unlike all other UK universities, the University of Law is not a charity but a company limited by shares. Three of the company’s eight directors are employees of Montagu Private Equity, which completed the purchase of the former College of Law for about £200 million after the government’s decision to award it university title. The University of Law’s articles of association, lodged with Companies House, state that the “directors shall, using their powers under the Companies Act, establish and thereafter maintain an academic board to act as its academic authority”. The articles add: “The directors shall establish and thereafter maintain regulations governing the composition, powers and responsibilities of the academic board.”
The directors have the same powers over the academic standards committee, according to the articles. john.morgan@tsleducation.com. Private equity firm will have a say in control ling its academ ic standards... Shocking. THE: For-profit university’s first accounts reveal 'Premier League'-sized debt. University of Law also has a new Guernsey-based parent firm Source: Alamy Following football: some observers likened the sale of the then College of Law to the kind of buyouts seen in the Premier League The UK’s first for-profit university, the University of Law, appears to have been “loaded” with the £177 million debt that a private equity firm took on to buy it and is now owned by a parent company registered in Guernsey. Significant financial developments for English higher education are revealed in the university’s first accounts since it became a for-profit. The former charitable College of Law was sold to Montagu Private Equity in November 2012, a sale completed only when the institution had been awarded university status by the government.
Times Higher Education reported last year how the award of university status appeared to be hurried through to meet a deadline in the sale process. A university spokeswoman highlighted the benefits of the transition to for-profit status.