Worried that traditional higher education could leave you enlightened but unemployed? Education Management may have the solution. Founded in 1962, the company operates five main branches with about 110 locations in more than 30 states and in Canada. The Art Institutes, Argosy University, South University, and Brown Mackie College offer degree programs from associate to postgraduate, and Western State University College of Law offers juris doctoral degrees. Education Management institutions boast a combined enrollment of 150,000 students. Private equity funds affiliated with GS Capital Partners and Providence Equity Partnersown about 38% and 32% of the company, respectively. Leeds Equity Partners owns about 8%.
Representatives from each of these funds make up half of the company's board.
Education Management focuses its programs in the creative and applied arts, behavioral sciences, education, health sciences, and business fields. It targets nontraditional college students such as those who are older and working, seeking career changes, or new opportunities. The company designs its curricula to appeal to that student demographic by offering online classes and flexible schedules. For students who are looking to embark on new career paths, the company places emphasis on fields that are forecast to be in high demand, such as allied health care and education.
The Art Institutes provide instruction in graphic design, art and animation, interior design, web and game design, digital filmmaking, fashion, and culinary arts and offer associate's, bachelor's, and master's degrees, along with some non-degree diploma programs. Argosy University offers undergraduate and graduate-level programs in education, business, psychology, and health and behavioral sciences. Brown Mackie College offers associate's and bachelor's degree programs in business, health sciences, criminal justice, information technology, and legal support. South University offers associate's, bachelor's, master's, and doctoral degrees through its business administration and health sciences programs, including criminal justice, information technology, psychology, nursing, pharmacy, and medical assisting. Western State University College of Law awards juris doctoral degrees at a single campus in Fullerton, California. The company also owns the Ventura Group, which offers courses and materials for post-graduate licensure exams in human services as well as continuing education courses for K-12 teachers.
Education Management's strategies for growth include adding new campuses and expanding its academic offerings, including its online and blended (classroom and online) programs. In 2011 through 2012, however, the company made the decision to scale back on adding new locations due to an uncertain regulatory environment related to Title IV student financial aid programs coupled with negative media coverage of the for-profit education industry stemming from federal investigations regarding recruitment and employee compensation among other concerns. In 2011 the company only opened four new locations, but developed 16 new academic programs and offered more than 350 new or existing academic programs to locations that previously had not provided such programs. Education Management also makes capital investments in technology, human resources, and upgrading its facilities, including its infrastructure and student interfaces and support systems, to attract future students.
Some newer programs introduced in 2011 include an associate's degree program in bioscience laboratory technology; master's degree programs in design and media management, public administration, educational administration, human resources management, non-profit management, public health, service sector management, criminal justice, and nursing; and a doctoral program in initial educational administration.
Average enrollment growth at its schools in 2011 increased by almost 14% compared to 2010. Net revenues for fiscal 2011 were $2,887.6 million up by roughly 15% from $2,508.5 in 2010, and net income increased by 27% – less