Global University Systems

Global University Systems
BV
Industry For-profit education
Founded 2013 (2013)
Founders Aaron Etingen
Headquarters Atrium Building, Strawinskylaan 3127, Amsterdam, The Netherlands
Area served
 Worldwide
Key people
Website globaluniversitysystems.com

Global University Systems (GUS) is a private limited company registered in the Netherlands. As a corporate group, it owns and operates several private for-profit colleges and universities in the UK, Canada, and Europe as well as other brands and companies in the education sector such as the e-learning provider InterActive. GUS was founded in its present form and name in 2013 by Aaron Etingen who serves as chairman, CEO, and majority stockholder.[1]

History

In 2003, the forerunner of GUS began with the founding of the London School of Business and Finance (LSBF) by Russian-born British entrepreneur Aaron Etingen (also known as Arkady Etingen).[1][2] This was expanded to several UK for-profit educational institutions known collectively as the LSBF Group, all owned by Etingen and including the London College of Contemporary Arts (LCCA) and the LSBF School of English. After the market reforms of post-secondary education introduced by UK higher education minister David Willetts in 2011, the LSBF group rapidly expanded its student numbers. Etingen added St Patrick's College, London to his portfolio when his company Interactive World Wide Limited purchased the college in 2012.[1][3][4]

Following a restructuring of his holdings in late 2012, Etingen established Global University Systems in 2013. Its UK business model at the time was heavily dependent on access to government-funded loans to cover students' tuition fees.[5] GUS was incorporated in the Netherlands as a Besloten vennootschap (or BV) and in turn became the owner of the LSBF Group institutions and St Patrick's College through Dutch holding companies. According to John Morgan writing in Times Higher Education, the Dutch "BV" structure (equivalent to a private limited liability company) does not require company accounts to be made publicly available and has a favourable tax regime compared to the UK. This led to further calls in 2017 for scrutiny of Dutch-incorporated private colleges and universities in the UK.[6][7] GUS's expansion continued over the next two years with the acquisition of the German business school GISMA in 2013 and both University Canada West and London's University of Law in 2015. All three were in financial difficulty at the time of their acquisition.[8][9][10]

In September 2015, following the Tier 4 licence suspensions at St Patrick's College and LSBF, Global University Systems announced plans for a two-year restructuring process of the group's UK holdings to begin in mid-2016. According to John Cox, former director of organisational development at GUS, the plan involved LSBF and its LCCA division coming under a new vocational entity offering only diploma courses, short courses and corporate training products. The vocational courses delivered by St Patrick's College and the Birmingham-based Finance Business Training would also come under this division. The University of Law was to become the sole provider of academic qualifications and professional qualifications, including the master's degrees previously offered by the LSBF Group. However, as of 2018 LSBF was still offering master's degrees, none of which were provided or validated by the University of Law.[11][12]

Between 2016 and 2018 GUS acquired further for-profit education institutions and companies, including the UK-based Arden University from Capella Education; IBAT College Dublin; the Israeli test-preparation company HighQ; and Laureate Germany with its subsidiary institutions from Laureate Education.[13][14][15][16]

Principal subsidiaries

Canada

Germany

Ireland

Israel

  • HighQ

United Kingdom

References

  1. 1 2 3 Malik, Shiv; McGettigan, Andrew; Domokos, John (30 May 2014), "Lecturers claim private college puts profits first". The Guardian. Retrieved 5 May 2016.
  2. ↑ Companies House. The University of Law Limited: Officers. Retrieved 7 September 2018.
  3. ↑ Morgan, John (3 September 2015). "LSBF licence to sponsor overseas students suspended". Times Higher Education. Retrieved 5 May 2016.
  4. ↑ Morgan, John (2 July 2014). "Director of education wins claim against former owner of St Patrick's College for unfair dismissal". Times Higher Education. Retrieved 5 May 2016.
  5. ↑ Wright, Susan and Shore, Cris (2017). Death of the Public University?, pp. 14–15. Berghahn Books. ISBN 178533543X
  6. ↑ Morgan, John (17 April 2014)."Private college goes Dutch but says profits are taxed in UK". Times Higher Education. Retrieved 5 May 2016.
  7. ↑ Morgan, John (24 August 2017). "DfE approves UK university sales, but regulator's advice kept secret". Times Higher Education. Retrieved 27 April 2018 (registration required for full access).
  8. ↑ Bradshaw, Della (5 September 2013). "Gisma rescued by for-profit education company". Financial Times. Retrieved 5 May 2016.
  9. ↑ Morgan, John (2 June 2015). "University of Law sold to Global University Systems". Times Higher Education. Retrieved 5 May 2016.
  10. ↑ Law Society Gazette (8 June 2015). "An education in bad publicity". Retrieved 5 May 2016.
  11. ↑ Custer, Sara (25 September 2015). "Global University Systems to restructure". The Pie (Professionals in International Education). Retrieved 5 May 2016.
  12. ↑ London School of Business and Finance (2018). Postgraduate Programmes. Retrieved 27 April 2018.
  13. ↑ Tighe, Mark (15 October 2017). "College gets marked down". The Times. Retrieved 27 April 2018 (registration required for full access).
  14. ↑ Morgan, John (19 August 2016). "Arden University sold to Global University Systems". Times Higher Education. Retrieved 27 April 2018 (registration required for full access).
  15. ↑ Gueta, Jasmin (23 April 2017). "Israeli Court Approves Sale of Test-prep Firm in Liquidation to London-based Company". Haaretz. Retrieved 29 January 2018.
  16. ↑ U.S. Securities and Exchange Commission (18 April 2018). Form 8-K Laureate Education, Inc. Retrieved 27 April 2018.
  17. ↑ Lyons, Tom (23 December 2013). "Ibat college in deal with private education provider Global University Systems". The Irish Times
  18. ↑ Custer, Sara (17 July 2013). "LSBF rebrands English school chain". The Pie (Professionals in International Education). Retrieved 5 May 2016.
  • Official website
  • Moody's Investors Service (21 July 2015). "Rating Action: Moody's assigns B2 CFR to Global University Systems Holding B.V.; stable outlook". Archived from the original on 31 May 2016. Retrieved 4 June 2016.
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