Linklaters has advised a Brookfield-led consortium on its minority preferred equity investment in GEMS Education, a UAE-based education and ancillary services provider, in one of the largest private equity investments in the region. Other investors in the consortium include Gulf Islamic Investments, Marathon Asset Management, and the State Oil Fund of the Republic of Azerbaijan (SOFAZ). As part of the transaction, an existing preferred equity consortium is substantially exiting its stake and GEMS is also undertaking a significant debt raise/refinancing.

GEMS Education has grown from a single school, following the 1959 arrival of the founding Varkey family to Dubai as teachers, to become the world’s largest provider of private K-12 education, with over 140,000 students.

This transaction represents one of the largest structured capital investments in the Middle East and showcases the strength of Linklaters’ experience advising financial sponsor investors providing highly structured and bespoke capital solutions, which have emerged as an increasingly important alternative financing solution for businesses in recent times.

The deal team consisted of cross-practice London and Dubai lawyers, led by Co-Head of the Global Financial Sponsors Sector Ben Rodham, Private Equity partners Andrew Lynch and Ben Suen (all London), Banking partner Reem Alsayegh and Middle East managing partner Scott Campbell (both Dubai). They were supported by Private Equity managing associates William Peck, Jake Thornton and Frances Hibbert (all London) and Julianna Halbeck (Dubai). Partner Rahul Manvatkar, counsels Amin Ebrahim and Richard Cole advised on funds matters. Partner Natura Gracia, counsel Mark Daniel and managing associate Maria Ziprani advised on antitrust and foreign investment matters.