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Private equity group TDR Capital is pursuing a sale of UK education business BPP in the latest sign of a revival in dealmaking as global monetary conditions stabilise. 

London-based TDR, which also backs supermarket chain Asda and pub group Stonegate, has appointed bankers from Houlihan Lokey and Morgan Stanley to lead a sales process for the group later this year, according to a person familiar with the matter.

BPP is a global education business that serves about 58,000 learners each year across 145 countries, with training courses in areas such as law, accountancy and digital marketing.

It could fetch a valuation of as much as £2.5bn, according to The Sunday Times newspaper, which first reported the sale plan. That would represent a significant increase since TDR invested in BPP three years ago, buying it for less than £700mn, according to the person familiar with the details. 

Under TDR’s ownership, BPP has made a series of acquisitions including IT apprenticeship provider Estio Training, digital specialist Firebrand Training and Buttercups Training, which provides programmes for pharmacists, pharmacy technicians and other health workers. It also provides university education to 21,000 students including one of the UK’s leading law schools.

Dealmaking is rising worldwide on the back of a global economy that is enjoying more stability in monetary conditions after a period of elevated inflation. Financing conditions are already easing for many companies.

The education sector has been a popular target for private equity groups such as CVC Capital Partners, TPG and others in recent years.

BPP was founded in 1976 by Ian Brierley, Charles Prior and Richard Price, whose surnames provided the initials for the group’s name. It was listed on the London stock exchange for a time, and was then owned by Vanta Education, a group backed by funds managed by Apollo Global Management. TDR acquired BPP from Vanta in 2021.

TDR was founded in 2002 by former bankers Manjit Dale and Stephen Robertson, and now manages more than €15bn in assets. It announced earlier this month that it had agreed to become the majority shareholder in Asda with an ownership of slightly more than two-thirds of the retailer.

TDR, Houlihan Lokey and Morgan Stanley declined to comment.