Sustaining Impact at Exit

Sourcing

Education and Workforce Development

Skilled labor shortages are challenging companies and their abilities to meet customer demands. Furthermore, investments in training and development enhance employee career opportunities while also improving productivity and retention. Lastly, there is an increasing emphasis on skills, not degrees, with widening acceptance of remote and work-based training as education delivery models.

Diligence

Bain Capital Double Impact’s (“BCDI”) thematic focus on education and workforce development identified Penn Foster, the nation’s leading skills development company with roots dating back to 1890. The values of improving access to affordable education, enhancing economic mobility and preparing learners for in-demand professions are foundational to BCDI’s and to Penn Foster’s innovative models.

Deal Making

In April 2018 BCDI led a syndicate of impact-aligned investors to acquire a controlling interest in Penn Foster. Penn Foster was seeking a partner aligned to its vision and mission, with the capabilities to help support its strategic plan for growth.

“An increasingly dynamic labor market is creating unprecedented complexity for both job-seekers and incumbent workers. Bain Capital Double Impact understands both the strategic and social imperatives that inform our work – together, we’re on a mission to empower individuals with the knowledge, skills and confidence to improve their employability and earning potential.” - Frank Britt, Penn Foster CEO, May 2018.

Value Creation

Executed Strong Start: Led management strategy sessions to evaluate and prioritize value creation opportunities. Insights drove company reorganization around industry verticals to accelerate product development and commercial focus.

Scaled Employer-Sponsored Model: Expanded B2B/employer-sponsored model with a strategic focus on the healthcare vertical. This included new courseware development and, in 2020, Penn Foster launched the Penn Foster Healthcare Careers Institute, showcasing its digital training offerings for frontline healthcare workers.

Recruited Complementary Additions to the Executive Team & Board: Played a key role in recruiting Chief People Officer, Chief Marketing Officer and Chief Technology Officer. We also recruited a world-class independent Board Member with a deep education, operations and policy background.

Launched Impact Advisory Council: Helped launch an Impact Advisory Council, bringing together employees from across the organization to establish and monitor core impact metrics, and identify and execute specific initiatives to further those goals. During BCDI’s ownership we tied management’s compensation to the achievement of impact metrics that promoted learner access and educational outcomes, thereby further integrating mission into the foundation of the company.

Completed Transformative Acquisition: In January 2019, helped acquire Ashworth College, an accredited online institution offering degree and certificate programs. This acquisition unlocked significant economic value and strengthened Penn Foster’s competitive positioning among a growing industry of skills development and education companies.

Drove Operational Enhancements: Leveraged Bain Capital’s value-added approach and global network to improve the company’s underlying capital structure and operating capabilities. We invested in a new brand strategy, built strategic partnerships, and drove cost efficiencies.

Exit

In November 2020, exited Penn Foster resulting in a highly successful impact and financial return. Notably, the exit included innovative impact covenants in the sale agreement, which mandates Penn Foster sustain its impact commitment moving forward.