The Rise Fund, TPG’s multi-sector global impact investing strategy, today announced that it signed a definitive agreement to acquire a majority stake in Teachers of Tomorrow, the nation’s largest teacher alternative certification program (“ACP”) which provides training, certification, and placement services for aspiring teachers, from Gauge Capital. The Rise Fund’s acquisition is subject to customary closing conditions and regulatory clearances and is expected to be completed by the end of September. Terms of the transaction were not disclosed.
“I am excited to have The Rise Fund’s support to build the nation’s leading provider of alternative teacher certification, professional development and teacher exam preparation,” said Phillip Braithwaite, CEO of Teachers of Tomorrow. “We have a proven platform that serves teachers and school districts and, in partnership with The Rise Fund, we are excited to build the premier educator ecosystem for teachers and schools across the U.S.”
“Teachers of Tomorrow is a natural fit for The Rise Fund’s mission to drive measurable social impact at scale,” said Steve Ellis, Co-Managing Partner of The Rise Fund. “We are excited to back Phillip’s vision to accelerate growth both geographically and across product lines to provide training and support throughout the entire lifecycle of a teacher’s career.”
Every state in the U.S. faces a severe shortage of teachers. The number of teaching candidates is declining, driven by the high cost and time commitment associated with traditional channels. Perennially high turnover in the profession has been exacerbated by COVID, with a record level of nationwide job openings for teachers. Out of these conditions, alternative certification has steadily grown as the pathway of choice for filling this shortage in many states due to lower costs and a more efficient training format. Teachers that come through the ACP channel are also more likely to be diverse, to teach in areas with the highest needs, and to be in mid-career job changes and therefore more likely to remain in the profession longer.
“We have enjoyed our partnership with Teachers of Tomorrow and are pleased with the increased impact the Company has had on the markets we serve. We selected The Rise Fund as the right future partner of the business based on their combination of education experience and overall mission,” said Tom McKelvey, Co-Founder and Managing Partner of Gauge Capital.
“Digitally enabled certification and training is a core investment theme for The Rise Fund. We spent over a year getting to know the team at Teachers of Tomorrow,” said John Rogers, Partner and Education Sector Lead at The Rise Fund. “And school district customers overwhelmingly told us they would hire even more candidates from Teachers of Tomorrow if the company could scale to meet their critical hiring needs. Teachers of Tomorrow provides STEM, bilingual, and career and technical certifications at all grade levels. They train 29% more teachers of color than the general population of teachers and the teachers they certify stay in the teaching profession at higher rates than national averages.”
Teachers of Tomorrow has expanded from one state to nine states over the past five years with plans to continue its market expansion. Through quality instruction and support, Teachers of Tomorrow provides the opportunity for skilled professionals to make the transition to teaching, which in turn makes a meaningful difference in the lives of their students. In addition to their curriculum, Teachers of Tomorrow offers advisory services throughout the entire certification process while preparing candidates to meet the specific requirements in their respective states. The company also works closely with candidates, school districts, talent acquisition teams, and principals to ensure the best possible talent is placed in the classroom.
Teachers of Tomorrow is uniquely positioned to offer the most focused professional development and test-prep offerings for teachers and districts across the country.
The investment in Teachers of Tomorrow further adds to The Rise Funds’ extensive education portfolio, which includes a number of companies that seek to expand access to quality education. Other portfolio companies across The Rise Funds include: DreamBox Learning, the nation’s premier provider of adaptive instructional software for math and literacy; Renaissance Learning, a market-leading education technology company currently providing assessments used by almost one-third of K-12 schools across the country; EverFi, a pioneer in community engagement across K-12 and the workforce; and InStride, the premier global provider of strategic enterprise education programs bringing affordable, flexible and accredited educational programs from leading academic institutions to working adults in the workplace.
Gauge Capital was advised by RW Baird and Ropes & Gray LLP. The Rise Fund was advised by Kirkland & Ellis LLP and Hogan Lovells LLP.
About Teachers of Tomorrow
Teachers of Tomorrow has been the nation’s most comprehensive provider of teacher services since 2005. Committed to helping educators excel in the classroom and beyond, Teachers of Tomorrow provides holistic support across the entire lifecycle of the teacher. To provide teachers with requisite skills to successfully enter – and stay – in the teaching profession, Teachers of Tomorrow provides accredited pre-certification training, research-based test preparation, and ongoing professional development. For more information, visit teachersoftomorrow.org
About Gauge Capital (www.gaugecapital.com)
Gauge Capital is a leading middle-market private equity firm based in Southlake, Texas. Gauge invests in five key sectors: healthcare services, technology, business services, government & industrial services, and food & consumer. The firm manages approximately $2.0 billion and in 2020, Inc. Magazine named Gauge one of the top 50 private equity firms for founders. For more information, please contact Andrew Peix, Managing Director of Business Development at email@example.com.
About The Rise Funds
The Rise Funds are a core pillar of TPG Rise, TPG’s global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on achieving the United Nations’ Sustainable Development Goals. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and conservation, education, food and agriculture, financial technology, healthcare, and technology.
With more than $11 billion in assets across The Rise Funds, TPG Rise Climate, and Evercare Health Fund, the TPG Rise platform is the world’s largest private markets impact investing platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns.
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