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Capstone Partners Advises Pacific College on Acquisition by Quad Partners

February 2009

Boston, MA - Capstone Partners LLC, a leading national investment banking firm, announced that it has successfully advised Pacific College of Oriental Medicine on its recent acquisition by Quad Partners, a premier private equity group dedicated to the education industry.  For over 20 years, Pacific College has been a national leader in providing allied health doctorate, masters, bachelors, associates and certification programs with a focus on oriental medicine, acupuncture and message therapy.  Capstone served as the exclusive investment banking advisor to Pacific College during the transaction, terms of which were not disclosed.

The announcement marks the latest post-secondary education transaction for Capstone Partners, adding to their growing legacy of success in the industry.  John Ferrara, Capstone’s President and Managing Partner commented, “The combination of Pacific and Quad should be a powerful one.  The footprint, educational focus and management depth that Pacific College brings to the table is tremendous and we fully expect that the Quad team will bring a depth of growth expertise that will greatly enhance the prospects for the College as a national leader.”

Pacific College was founded in 1986 and is headquartered in San Diego with campuses in New York and Chicago.  Over the past five years, the College has educated over 3,000 students nationwide and currently enjoys a student body of roughly 1,500 students.  In addition to providing education programs, the College also operates the Pacific Symposium, the industry’s top academic conference and tradeshow which involves leading professionals in oriental and holistic medicine from around the world.

Quad Partners was founded in 2000 to make value-added investments in the education industry.  Today, Quad is the most active investor in privately-owned education companies in the United States.  The Firm’s strategy is to invest in small and mid-sized education businesses, then applying unique operating and financial expertise to help drive growth and improve academic results.  Quad currently manages over $200 million of equity capital from leading investors.

 

“There was never a doubt that Capstone had the College’s best interests at heart throughout the entire transaction process. Capstone would have cancelled the deal versus seeing our shareholders less than excited about the terms. Fortunately, they made sure that we were. We signed the purchase agreement at the beginning of the credit crisis and financial market meltdown. Despite the landslide in the broader economic environment at the time, we closed the deal by the end of the year, due in large part by Capstone’s doggedness, creative approach and technical deal negotiation capabilities. I hired Capstone because of the firm’s industry expertise, but more so because of the feedback I received from their clients. Now, I am happy to add my name to that list.”
Jack Miller
CEO & Shareholder
Pacific College of Oriental Medicine