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Bridgepoint Education / Zovio (Ashford University)

bankrupt

Education — PE-backed board (Ryan Craig / Warburg Pincus alum)

Deal Terms

Entry Year2005
Entry EV$0.5B
Entry Multiple6x
Leverage2x
Debt Amount$0.1B

Outcome

Exit Year2022

Risk Metrics

LTV (est.)20%
Debt / EV0.20x

Notes

PE-backed board drove aggressive online enrollment. Peak $1.4B market cap. California court fined Ashford/Zovio $22.4M for misleading students. Sold Ashford to University of Arizona for $1. Zovio dissolved Oct 2022. $6.1B in student debt cancelled for 261,000 former students. PE governance created a predatory enrollment machine.

Sponsor

Warburg Pincus$83B AUM