ALTAMIR_REGISTRATION_DOCUMENT_2017

Presentation of the Company 1 PRESENTATION OF THE COMPANY AND ITS ACTIVITIES

www.inseec.com

1) Business description INSEEC U. is the leading for-profit post-secondary education provider in France. With the acquisition of the French activities of theUSgroup Laureate in 2016, the INSEECU. group nowoperates 16 schools in France (Paris, Bordeaux, Lyon and Chambery) and abroad (Monaco, London, Geneva, San Francisco and Shanghai), for nearly 23,500 students. INSEEC U. offers a wide range of programmes ranging from preparation for entrance exams to doctoral degrees. Building on its French roots, the group’s strategy is to develop world-class programmes anddistinctiveexpertise in fivedomainsof education: (i)management, (ii) engineering, (iii) communication, design and digital marketing, (iv) political science and international relations, and (v) luxury goods, real estate, sports, wine and spirits. 2) Why did we invest? INSEEC U. is a leading for-profit post-secondary education provider inFrancewith several key strengths vis-à-vis competitors: agility and innovation in programme development, sound governance, cost efficiency, marketing skills, attractive and multi-site campuses, programme diversity and no dependency on subsidies. Corporate governance is sound, and the group’s experienced CEO has a successful track record. Its Grande Ecole programme is ranked among the top 25 business schools and contributes to brand building and other programmes via ahaloeffect.INSEECU.alsohasthreeotherleadingprogrammes (MSc, SupdePub andEcole deCommerceEuropéenne), on topof recently acquiredprogrammes, twobusiness andone engineering (EBS, ESCE and Ecole Centrale d’Electronique). Growing in volume and price, and ripe for consolidation, the for- profit higher educationmarket is attractive and has strongmarket intrinsics: counter-cyclicality, barriers toentry, revenue visibility, no working capital needs, highprofitability andhigh cash conversion. 3) How do we intend to create value? INSEECU. intends to pursue its growth objectives. It will grow the existing core business by fostering further academic excellence and increasing the attractiveness of its schools and will expand market share through new programme offerings. Programmes are being internationalised and expanded to other countries through new campuses and exchange programmes with foreign universities. INSEEC U. also plans to crystallise significant potential for synergieswith Laureate’s French operations, and further optimise INSEEC U.’s existing cost structure.

4) What has been achieved? Since investment, thegrouphas finishedoptimising itsorganisation and pursued its international expansion by acquiring CREA, a Geneva-based communications and design school, launching a luxury brand training programme in Asia and launching a new campus in San Francisco. In 2015, theMinistry of Higher Education granteda four-year renewal of INSEEC’s accreditationas a “Grande Ecole” , which contributes to the school’s attractiveness. In July 2016, the group finalised the acquisition of the French subsidiaries of US group Laureate, nearly doubling in size as a result, and expanding its offerings for engineering training and online training for executive managers. 5) How is it performing? Four years after our investment, INSEEC U. is performing significantly better than plan owing to a transforming acquisition (Laureate France), the continued development of innovative programmesanddouble-digitgrowth innewenrollmentseachyear. Over the first half of its 2017/18 financial year (FYE 30 June), INSEEC U.’s revenue rose by 2% to €113.5m and its EBITDAwas in line with the year-earlier period. During this period, the company continued to strengthen its leadership through several initiatives: (i) grouping the 16 schools under the new brand, INSEEC U. (for INSEEC Universitas); (ii) continuing the efforts to use the group’s real estate more efficiently to create unique multidisciplinary campuses; (iii) launching a digital transformation project intended to create a unique student experience; and (iv) pooling resources and strengthening governance to create a platform for consolidation. The group expects to generate double-digit growth in EBITDA for the 2017/18 financial year spurred by an 18% increase in new student enrolment in September/October 2017 compared with the previous year, and additional cost synergies generated by integrating new schools. The valuation of the investment in INSEEC U. grew by €17.8m during the 2017 financial year. 6) How will we crystallise value? The group’s asset-light structure translates into a highly cash generative business model. It has significant potential for further growth via newprogramme offerings and international expansion, which shouldbe very attractive for both financial and tradebuyers.

SECTOR

COUNTRY

DATE OF INVESTMENT RESIDUAL COST IN €M

FAIR VALUE IN €M

% OF THE PORTFOLIO AT FAIR VALUE

2013

42.9 91.3

10.2

France

26 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr