Since 2000, demand for private education in Brazil has boomed as a result of education reforms, increasing wages and high demand for skilled workers. In 2009, when we acquired co-control of Kroton, a small regional player in K-12 and post-secondary education, we saw its potential to expand through consolidation in a fragmented yet growing market, a more efficient model and new product initiatives.
To drive our acquisition plans, we created a dedicated M&A department, which was able to support Kroton’s expansion throughout the country and into distance learning. With cost structures and efficiency as key areas of focus,we worked alongside management to develop the operating model Kroton needed to compete nationally. The successful implementation of student financing has been another important measure to widen access.
Today, Kroton is the largest private education company in Brazil and the largest worldwide in terms of market capitalization. After integrating seven acquisitions, the business has multiplied its student base 11 times and also become the leading distance-learning provider nationwide. With financial performance strong, the company is well-positioned to benefit from the continued opportunities ahead.