Public-private partnerships in
emerging markets
Prepared by Parthenon-EY for OBHE’s future of
PPP in higher education
London, December 2014
Economic growth is directly linked to tertiary education enrolments
100%
Republic of Korea
Finland
Greece
New Zealand
Tertiary enrollment ratio
80%
Ukraine
Lithuania
Belarus
Uruguay
60%
Latvia
Poland
Romania
Iceland
Hungary
Estonia
Czech Republic
France
Netherlands
Ireland
Austria
Switzerland
Croatia
Turkey
Armenia
Colombia
Nepal
Indonesia
Laos
Myanmar
0%
$0
Uzbekistan
Hong Kong (China), SAR
UAE
Mexico
Bahrain
Algeria
Saudi Arabia
Tajikistan
20%
Cyprus
Brazil
Tunisia
China
Burundi
Ethiopia
Belgium
Israel
Jordan
40%
Vietnam
Sweden
Italy
Slovakia
Bulgaria
Norway
Australia
Portugal
Lebanon Chile
United States
Denmark
Oman
Kuwait
El Salvador
Guatemala
Azerbaijan
India
Morocco
R2 = 70%
Cape Verde
Bhutan
Pakistan
Bangladesh
Ghana
Burkina Faso
Tanzania
Madagascar
$20,000
$40,000
Brunei Darussalam
$60,000
PPP adjusted GNI per capita
Parthenon-EY | Page 2
Private higher education is growing faster than real GDP across emerging markets
Private higher education spend vs. real GDP growth, (2009-12)
7
Asia
6.6x
Middle-East
Africa
6.0x
6
Latin America
3.4x
2.8x
3
2.0x
2
1.9x
1.7x
1.4x
1
0
UAE
Saudi
Arabia
South
Africa
Kenya
Brazil
Singapore
India
China
Parthenon-EY | Page 3
Public-private partnerships in emerging markets
Governmentsponsored
private branch
campuses
Private agencies
and public
universities
Public universities
setting up private
corporations
Internationalization encourages partnerships between
public and private sector
Parthenon-EY | Page 4
The Saudi government is awarding contracts to global private providers through the
Colleges of Excellence program
Number of Saudi Colleges of Excellence, 2012-2020F
Select private providers
awarded contracts
• Laureate International Universities
Goal is to enroll
~450K students in the
institutions by 2020
100
100
• Moulton College
• GEMS Education Solutions
• Aviation Australia
80
• Cinop
60
40
37
20
10
0
2012
2014
2020
Parthenon-EY | Page 5
NYU is the highest ranked institution to have a full-scale branch campus in the GCC
2014 QS world university rankings, NYUAD vs.
other GCC universities
• The region’s first comprehensive liberal arts
college operated by an American university
• Competitive admissions standards (13%
acceptance rate)
• Aims to enroll world’s top 1-2% of students
• Instruction in English
Institution name
Location
Type
2014 QS
ranking
NYU
Abu Dhabi, UAE
Branch campus
41
Carnegie Mellon
Doha, Qatar
Branch campus
65
Texas A&M
Doha, Qatar
Branch campus
165
King Fahd
University
Dhahran, Saudi
Arabia
Main university
225
Paris Sorbonne
Abu Dhabi, UAE
Branch campus
227
King Saud
University
King Abdul Aziz
University
Riyadh, Saudi
Arabia
Jeddah, Saudi
Arabia
Main university
249
Main university
344
UAE University
Al Ain, UAE
Main university
385
AUS
Sharjah, UAE
Main university
390
Parthenon-EY | Page 6
INTO, a private provider of recruitment services, has successfully increased
international enrolments for public universities
International enrollments at a U.S. public university, 2010-12*
Critical success factors for INTO
CAGR
1.5
1.4K
• In-country marketing penetration:
INTO has 70+ marketing staff in 20
country markets
1.2K
1.1K
1.0
• Outsourced international admissions
10%
0.5
0.0
International
enrollments
2010
2011
• Lower acceptance criteria for
pathway programs
2012
INTO
Parthenon-EY | Page 7
Many public universities partner with private providers or create their own private
institutes when setting up abroad
Institution
Curtin University
Murdoch University
University of Wollongong
Location
Malaysia
Singapore
Dubai
Structure
Partnered with government to
setup private branch campus
Degrees offered through private
partners
Incorporated private company
runs branch campus
Parthenon-EY | Page 8
About Parthenon-EY and the Education practice
About
Parthenon-EY
Parthenon joined Ernst & Young LLP on August 29, 2014. Parthenon-EY is a strategy consultancy, committed to bringing
unconventional yet pragmatic thinking together with our clients’ smarts to deliver actionable strategies for real impact in today’s complex
business landscape. Innovation has become a necessary ingredient for sustained success. Critical to unlocking opportunities is
Parthenon-EY’s ideal balance of strengths – specialized experience with broad executional capabilities – to help you optimize your
portfolio of businesses, uncover industry insights to make investment decisions, find effective paths for strategic growth opportunities
and make acquisitions more rewarding. Our proven methodologies along with a progressive spirit can deliver intelligent services for our
clients, amplify the impact of our strategies and make us the global advisor of choice for business leaders.
About Parthenon-EY’s Education practice
Parthenon has served as an advisor to the education sector since its inception in 1991. The Parthenon-EY Education practice – the first
of its kind across management consulting firms – has an explicit mission and vision to be the leading strategy advisor to the global
education industry. To achieve this, we invest significantly in dedicated management and team resources to ensure that our global
experience extends across public sector and non-profit education providers, foundations, for-profit companies and service providers,
and investors. Parthenon has deep experience and a track record of consistent success in working closely with universities, colleges,
states, districts, and leading educational reform and service organizations across the globe.
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Parthenon-EY | Page 9
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