3 min read 21 Dec 22
For more information on the financial terms used in this article, please consult the glossary.
Founded in 1966, Cogna is the largest private educational company in Brazil. Generally speaking, affluent children in Brazil attend expensive private schools and progress into public universities, which creates a barrier for less-affluent children. In the past, the Brazilian government would help through subsidies in the form of student loan programmes (FIES). However, given rising pressure on fiscal budgets, this is no longer the case. As government is no longer able to fill this gap, Cogna has become a more affordable and effective private option.
Cogna began its educational services in 1966, when five friends founded the Pitágoras preparatory course for university admission exams. Within two years, 600 students had enrolled. This initiative grew throughout the next few decades, opening the first Pitágoras school in 1974, creating the Pitágoras network of schools in the 1990s and the first Pitágoras college in the 2000s. In 2014, under Cogna’s former name Kroton, the company merged with Anhanguera Educacional, to make it the largest educational company in the world in terms of market cap and students.
Cogna provides quality and affordable education, providing greater access for students wanting to enter the Brazilian university system. Its core business is operating private post-secondary education programmes. Over the years and through various transformational acquisitions, Cogna has created an Education ecosystem, primarily comprising a leading K12 platform business (Vasta) and hybrid and digital postsecondary and medical education business (Kroton). Cogna operates through 124 post-secondary education campuses, across 96 cities in Brazil.
The COVID-19 pandemic presented a challenge for Cogna, which it saw fewer admissions and higher student dropouts, given lockdowns and the subsequent financial strain for students (primarily working students). Therefore, student enrolment shrunk, with growth from distance learning eclipsed by challenges in the on-campus business. Cogna is back to growing student count, with >2 million currently enrolled. Its shift to a more capital-light digital and hybrid education platform business offers an accessible and flexible option for students, which is especially helpful for distance learning and part-time working students, wanting to re-skill or improve their education.
This information is not an offer or solicitation of an offer for the purchase of shares in any of M&G’s funds.
The views expressed here should not be taken as a recommendation, advice or forecast. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.
Before subscribing you should read the Prospectus and the Key Investor Information Document.
This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L-2449, Luxembourg.
The value and income from any fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that any fund will achieve its objective and you may get back less than you originally invested.