Sanlam Private Equity acquires strategic stake in Boston City Campus

New partnership unlocks access to affordable, quality higher education for all South Africans, from high school graduates to those wanting to advance their careers or pursue postgraduate studies.

South Africa, 11 May 2025: Sanlam Private Equity (SPE), a division of Sanlam Investments, acting through its private equity fund under management – SPE Mid Market Fund I – has finalised the acquisition of a significant stake in Boston City Campus, one of South Africa’s leading and premier distance learning institutions in higher education. The transaction marks a milestone in SPE’s commitment to investing in businesses that drive financial returns and measurable social outcomes.

This strategic partnership is rooted in a shared ambition to bridge the accessibility gap in higher education, particularly for South Africa’s vast number of high school graduates who don’t qualify for full government funding but can’t afford traditional, high-cost tertiary institutions. Beyond quality education, Boston continues to significantly impact the South African economy through its commitment to providing access and affordable options for all students.

“Boston is reaching learners who would otherwise be left behind,” says Paul Moeketsi, Managing Partner at Sanlam Private Equity. “This isn’t just an education deal – it’s an investment in human capital, in potential and in building a stronger South Africa. Investing in education is how we invest in the future we need.”

Ari Katz, founder and CEO of Boston City Campus, adds: “We are incredibly proud to join forces with Sanlam Private Equity to scale our efforts and shift the education landscape in South Africa. There were immediate synergies in terms of our mission and vision. We share the deep belief that we must support South Africa’s demographic dividend by giving young people the very best educational foundation to thrive. This underlies everything. It’s key to unlocking our nation’s promise for generations to come.”

Expanding access for underserved students

Boston currently operates 47 support centres across South Africa, offering ICT infrastructure, student registration and support, even in areas where access to traditional brick-and-mortar institutions is limited or unavailable.

Dr Gift Pule, Principal at Sanlam Private Equity, explains the appeal of Boston City Campus as an impact investment. “This is a business that has reimagined how higher education can work in South Africa.” He adds: “Their unique model, combining digital content delivery with nationwide student support, gives learners real proximity and practical help.”

Boston’s qualifications range from higher certificates, diplomas, bachelor’s degrees and postgraduate qualifications. These include the coveted SAICA-endorsed Bachelor of Accounting for the CA(SA) track, a four-year Bachelor of Laws (LLB) for the Attorney or Advocate tracks, and the Master of Business Administration (MBA). In addition to its local and international accreditations, the institution is preparing to seek registration as one of South Africa’s first private universities in the distance and online modalities. This move could significantly broaden its footprint and academic influence.

A shared commitment to inclusive growth

The deal is aligned with Sanlam’s broader strategy of leveraging capital to drive inclusive growth and meet key ESG priorities. Education remains one of the most powerful levers of change in South Africa, and Boston is uniquely positioned to deliver on both access and quality. “At Sanlam Investments, we’re constantly asking: how do we back businesses that deliver real-world value? Boston is a perfect fit,” says Pule. “It’s scalable, well-governed and deeply impactful.”

The transaction also preserves over 1,000 jobs within Boston’s current operational footprint and positions the institution to scale sustainably in response to rising demand for post-school education, workforce re-skilling, and lifelong learning.

A market-ready private equity partner

Moeketsi believes this deal also highlights Sanlam’s strength as a trusted private equity partner – one that brings more than capital.

“We’re long-term investors. We understand the operational and strategic levers that help education businesses grow, especially in a highly regulated and purpose-driven environment,” he explains. “Our role is to back Boston’s vision, ensure good governance, and support expansion that prioritises both sustainability and student outcomes.”

The value of the deal remains undisclosed, however, the investment reflects a strong and material commitment to Boston’s future and to private equity’s role in reshaping the post-school education ecosystem.

Enabling a smarter, more equitable future

“We’re incredibly proud to be part of this next chapter with Boston,” said Moeketsi. “We need more education businesses that think differently, reach widely, and act boldly. Boston does all three – and we’re here to help them scale that impact.”

SPE Mid Market Fund I

Boston follows similar high-impact investments by SPE in Cavalier Group, Absolute Pets, Q Link Holdings, SkipWaste, Danny’s Auto, S. Bacher & Co and Trade On. These investments were made as part of the SPE Mid Market Fund I, a multi-billion rand fund raised in 2020 with the ambition to generate superior returns for investors, while delivering key social impact and growing jobs. Moeketsi conclused, “Our partnership in Boston marks the penultimate investment for SPE Mid Market Fund I, which is set to be fully deployed by April this year – marking a 4-and-a-half-year investment program for the Fund.”

Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS, and disclaimers can be viewed on www.sanlaminvestments.com