What Recession? ABS Capital Is Cashing In On Education
The education sector has been good to private equity this year, especially in the case of ABS Capital. The firm is poised to earn at least 6x its money on its investment of Rosetta Stone Inc., a foreign language learning software business. Yesterday the company priced its IPO at $18 a share, well above its expected range of $15 to $17. Today, the shares opened at an impressive $23 a share, and as of 11:00 a.m. they had risen above $25. So let’s break down what that means for ABS Capital’s investment. The firm purchased Rosetta Stone with Norwest Equity Partners in 2006 for $62 million. ABS Capital put down $29 million in...
16 April 2009•2 mins read
