International private equity firms Siguler Guff and CapMan invest in Russian educational test preparation company
Siguler Guff and CapMan, two international private equity firms, announced last week an investment in Maximum Education, a major Russian provider of educational test preparation services, in exchange for “a significant minority stake.”
Siguler Guff declined to disclose any further details of the transaction, but Maximum Education CEO Michael Magkov told East-West Digital News it was the second round of external funding for his company, which is currently “at growth stage.”
Maximum Education was initially funded by its founding team with the support of early stage investor Nova Capital.
Founded in 2013, Maximum Education provides online and offline test preparation services and operates two learning centers in Moscow and St. Petersburg. It is designed to serve the more than two million Russian students who take exams annually in preparation for high school and university.
The company’s institutional approach to test preparation was developed in response to the Russian government’s country-wide educational reforms, which include mandatory standardized testing for all Russian students planning to enter high school and university.
“The lack of companies offering an institutional approach in response to Russia’s educational reforms creates a significant opportunity for Maximum Education to gain traction and to become the market leader in the Russian test preparation industry,” commented Drew Guff, Managing Director and Founding Partner of Siguler Guff.
“As students pursue graduate degrees and vocational programs, and look to attend school abroad, there is strong potential for the business to expand into other educational segments,” he added.