(Bloomberg) -- TPG Inc. is nearing a deal to acquire UK special educational needs provider Outcomes First Group, people with knowledge of the matter said.
Rise Fund, the private equity firm’s impact investing arm, beat out other bidders for the business, according to the people. The purchase is set to value Outcomes First at around $1 billion, the people said, asking not to be identified because the information is private.
Middle Eastern alternative asset manager Investcorp will become a significant minority investor in Outcomes First through the transaction and have a representative on its board, the people said.
Outcomes First is being sold by pan-European investment firm Stirling Square. It operates under brands including Acorn Education, a provider of education for children with behavioral, emotional, social, learning or physical needs. The company also runs specialist schools for children with autism.
The TPG consortium has been discussing partly funding the deal through a £350 million ($440 million) unitranche loan — a blend of senior and junior debt — provided by European direct lending firm Arcmont Asset Management, the people said.
Representatives for TPG, Stirling Square, Investcorp and Arcmont declined to comment.
(Updates with valuation in second paragraph.)
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