Media corporation Bertelsmann formed a $100m investment fund, University Ventures, on Tuesday, in collaboration with limited partners including the University of Texas Investment Management Company (UTIMCO).
The fund will focus on partnering with universities to develop innovative higher education programs across the US and Europe, particularly those which address pressing social and economic needs.
The fund is planning between six and 10 investments over the next three years, some of which are already underway, and hopes to provide educational programs that facilitate better outcomes for a lower cost.
Bertelsmann is looking at the fund as a vehicle for its early entry into collaborative private/educational programs, an industry it expects to see grow significantly as digital technology becomes more widespread and fiscal concerns mean universities will need to restructure their prospectus, partnering more widely with private institutional investors.
Thomas Rabe, chief executive officer of Bertelsmann and chairman of the funds’ investment committee, said: "Bertelsmann chose to work with University Ventures because the team has a demonstrated track record of envisioning new business models and building successful education ventures while respecting traditional academic institutions. In combination with Bertelsmann’s profound media and services expertise, this leads to a real win-win situation."
Thus far, University Ventures has established a company in Europe, known as Higher Education Online, that will provide degree programs and support online in partnership with European universities. Projects also include a dual-language, Hispanic-focused college in California, to be set up in collaboration with Brandman University.