Princess Charlotte arrives for her first day of school with her brother Prince George and her parents, the Duke and Duchess of Cambridge, at Thomas' School ; Battersea in London. Photo: WPA Pool/Getty Images Europe
Thomas' Battersea, an independent preparatory school in southwest London, is best known for educating descendants of royalty and future celebrities.
Notable former pupils include the Prince George and Princess Charlotte, as well as model Cara Delevingne and singer Florence Welch from Florence + Car.
In April, the fee-paying school, part of Thomas's London Day Schools group, attracted private equity firm Oakley Capital as an investor to finance the construction of its four facilities.
At one time, Ben Thomas, head of the family education group , said: “We never seriously considered engaging Thomas's financial partner until we met Oakley.”
“We found that they understood the long-term nature of education, aligned with our values and were willing to support us.” as a minority investor.”
The deal represents a wider change in how independent schools across the UK are funded, with a growing number of them turning to private investors for support.
In April, Thomas's Battersea attracted Oakley Capital as an investor to finance construction at its four sites. Photo: Jack Taylor/Getty Images Europe
Last year, US investment firm Stonepeak took a €1bn (£860m) stake in Inspired Education, a UK company that operates more than 70 fee-paying prep, primary and secondary schools on five continents, including 18 in the UK. UK
Independent school funding models could change even further if the Labor Party comes to power at the next general election.
Labor Party leader Sir Keir Starmer has vowed to end the charitable status of private schools. schools, meaning they will lose their 20 per cent VAT exemption, which amounts to around £1.6 billion for the sector, and will have to collectively pay more than £100 million in business rates.
The proposed policy caused a backlash. Conservative MPs have called it a “measure of spite” and schools are warning they will have to raise fees significantly.
Research by Weatherbys Private Bank predicts private school fees will double under Labour's measure. government, with the average cost of boarding schools rising to £688,000 by 2036.
Starmer defends the policy, saying: “The removal of tax breaks is not aimed at independent schools in any way.” ideological reasons.” /p>
“This is simply an attempt to answer the question: If your public schools don't have teachers in core subjects like math, are you going to do anything about it?”
Others, however, are not convinced. One city leader said: “What they are proposing is ridiculous. For paltry financial gain, they are now making private education (a legitimate choice in a free society) the preserve of the super-rich.
“They are taking opportunities away from hardworking parents who want to invest in their children's future beyond the norm. Their focus should be on improving public education.”
However, imposing a higher tax burden on independent schools would hurt the profits of these institutions and force some of them to seek outside investment.
< p >City experts believe the sector is ripe for consolidation if Labor continues its tax raid.
One investment bank source said: “Investors are increasingly looking at schools as infrastructure. They attract the same money: people looking for reliable and long-term profits. It's sovereign wealth, big pension funds and all that.
“VAT will change some aspects of the economy and you'll probably see some consolidation next time.”
However, schools may be capital intensive, which may discourage some investors. Operators must invest in staff, equipment and apprenticeships in a competitive environment.
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