SAO PAULO Advent International Corp and its FSG Brazilian education company purchased Brazil's Faculdade Cesuca university in Rio Grande do Sul state for an undisclosed price, the U.S. private equity firm said in a statement on Friday.
Advent since last year has controlled FSG, which is formally known as Centro Universitário da Serra Gaúcha. The acquisition of Cachoeirinha, Brazil-based Faculdade Cesuca will add 2,600 students to the company's 11,000.
Advent Director Newton Maia said in an interview that FSG would probably make two other acquisitions of universities in 2017. The private equity firm is doing due diligence in one company in Brazil´s northeastern region, Maia said, declining to disclose its name.
Advent expects FSG to reach 20,000 students next year, Maia said. The firm was an early investor in Kroton Educacional SA (KROT3.SA), holding stakes in the world´s largest listed for-profit education company from 2009 to 2013, he said.
The move shows investors still see growth potential in for-profit education in Brazil, even as the country´s effort to rein in public budget deficits affects government-backed student loans. Brazil´s government recently announced new rules for student loan program Fies.
(Reporting by Tatiana Bautzer; Editing by Chizu Nomiyama and Lisa Von Ahn)