HE private funders captivating over doubting Thomas, report says

Financing of education in the private sector gradually won over doubters about its social value and return on investment. So say the authors of a new report by consultants on management education, Parthenon-EY, presented at the summit of WISE last week entitled "Investing for Impact: Quality education for sustainable and inclusive growth" in Doha, Qatar.

Conference - one of the largest international gatherings education - brings together public and private sector operators, politicians, governments, NGOs and foundations from over 100 countries.

This year's event opened Wednesday with a special address by the wife of US President, Michelle Osama launched its "Let girls learn."

The report presented by the Parthenon-EY managing director Ashbin Assomull and Director Emerging Markets Education Marianna Abdu stressed how the private sector retreated when demand for education and support services outstrips what the public sector is able to offer.

Focus on Emerging Markets

Titled Driving classes Driving Growth: How private capital in education is increasing access, inspire innovation and improve performance, the report focuses on the emerging markets of Asia, Africa, the Middle East and Latin America.

Abdu told University World News: "This is where we see the strongest growth in demand for quality education, especially from fast-growing middle classes.

"Many government systems are struggling with the weight of demand, which has increased in recent years."

Assomull said: "Some of the most successful private enterprise in higher education is conducted in emerging markets for the exact reason that governments do not have the funding nor the capacity to cope with growing demand."

Private loans in Brazil

Speaking to University World News, Assomull said Brazil had the largest private sector higher education market in the world, the provision of private sector dominant.

Brazilian case highlighted in the report focus on Ideal Invest, non-banking financial institution specialized in providing loans to students to study in private universities.

Since 2006 it has supported more than 50,000 students through its programs PRAVALER loans totaling more than BRL $ 1,000,000,000 (US $ 264 Mio), the report said.

Now is the largest non-governmental provider of student financing of higher education in Brazil and uses asset-backed securities to finance its portfolio.

Ideal Invest has partnerships with 200 universities and expects to double its market coverage to more than 100,000 students in 2016.

Abdu said: "Here we have a student financial company in response to the abundance of private higher education institutions by offering new student loans to those who can not get a state loan.

"They have allowed thousands of students to gain access to higher education that otherwise would not be able to do so. Because credit portfolio is financed by providing the Brazilian stock exchange, investors have a real incentive for more students to take loans.

"Students enjoy course, as universities are able to provide education for more people."