Apollo Education Group (APOL), the owner of the for-profit University
of Phoenix, will become a privately run institution by the summer of this year.
Enrollment has plunged 20% from a year ago and the net revenue is down 18%. The
company is also under investigation for unfair business practices. University
of Phoenix will now be in the hands in a group of investors that include
Vistria Group, Apollo Global Management, and Najafi Companies. “The Apollo
Education Group Board of Directors reviewed strategic alternatives and believes
this transaction is in the best interest of all shareholders and strongly
supports our transformation efforts,” said a statement from Greg Cappelli,
chief executive officer of Apollo Education Group. The Chicago-based Vistria
group has strong ties to the Obama administration because Martin Nesbit, the
leader of Vistria, is the leader of the Obama Library planning committee. Tony
Miller, chief operating officer of Vistria, is the former Deputy Secretary of
the Department of Education. Shares were up in pre-market trading this morning.
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