Lombard Odier's Strategic Expansion in Private Equity and Education Tech: Assessing Long-Term Value Creation Through Targeted Acquisitions and Minority Stake Investments

Lombard Odier’s strategic pivot toward private equity and education technology in 2025 reflects a calculated effort to align capital with long-term societal and financial returns. Amid a volatile macroeconomic landscape, the firm has positioned itself as a key player in sectors poised for resilience and scalability, particularly in education—a $10 trillion global industry projected to grow at a 12.22% compound annual rate in early childhood education (ECE) through 2034 [1]. By leveraging minority stakes and targeted acquisitions, Lombard Odier is not only capitalizing on market trends but also fostering innovation in areas like AI-driven learning and inclusive skill development.

Financial Resilience and Strategic Allocation

Despite a 2% decline in assets under management (AuM) to CHF 211 billion in H1 2025, Lombard Odier’s operating profit surged by 19% to CHF 139 million, underscoring the firm’s ability to generate returns through strategic asset allocation [2]. This financial performance is partly attributed to its focus on private assets, which now constitute a significant portion of its portfolio. The firm’s emphasis on private equity and infrastructure investments—sectors with strong secular tailwinds—has allowed it to navigate currency fluctuations and low-yielding bond markets [3].

Education Tech: Bridging Gaps Through Impact Investing

Lombard Odier’s education technology investments exemplify its dual mandate of financial and social impact. The firm has backed initiatives like CodersTrust, a Danish startup that combines FinTech, EdTech, and WorkTech to provide IT skills training in developing countries, creating sustainable livelihoods for young people in Bangladesh, India, and Kenya [1]. Similarly, its support for Labster, a VR-based science education platform, highlights its commitment to democratizing access to high-quality STEM education [4]. These investments align with the firm’s broader vision of using technology to address global learning gaps and prepare individuals for evolving job markets.

The firm’s approach extends to early childhood education, where it has supported Primo Toys, a UK-based company that introduces screen-free coding tools for children, and Bulbee, a Swiss tutoring app that connects students with vetted educators [4]. These ventures reflect Lombard Odier’s focus on scalable, technology-integrated solutions that cater to both traditional and digital learning ecosystems.

Private Equity in Education: A Resurgent Sector

Private equity’s renewed interest in education—driven by sectoral stability and long-term return potential—has positioned Lombard Odier to capitalize on strategic opportunities. While the firm has not disclosed specific acquisitions in 2025, broader market trends indicate a surge in EdTech M&A activity. For instance, Cengage Group’s acquisition of Visible Body in January 2025 and IXL Learning’s purchase of MyTutor to enhance AI-driven tools illustrate the sector’s shift toward integrated platforms [5]. Lombard Odier’s partnerships with over 130 General Partners and its portfolio spanning 4,000 companies suggest a likely involvement in similar deals, even if unpublicized [6].

The firm’s emphasis on impact investing further differentiates its strategy. By prioritizing ventures with measurable social outcomes—such as CodersTrust’s focus on economic inclusion—Lombard Odier aligns with global megatrends like digital transformation and climate action [7]. This approach not only mitigates reputational risks but also taps into growing demand for ESG-aligned investments.

Challenges and Nuanced Opportunities

Despite optimism, the K-12 EdTech segment remains a challenge for private equity due to its reliance on public funding and slow growth timelines [8]. Lombard Odier’s focus on higher education and ECE—segments with clearer scalability—demonstrates a pragmatic approach. For example, the firm’s support for Universidad Europea, a Spanish higher education platform acquired by EQT, underscores its preference for institutions with strong employment outcome data [1].

Conclusion: A Blueprint for Long-Term Value

Lombard Odier’s strategy in private equity and education tech is a testament to its ability to balance financial prudence with societal impact. By targeting sectors with inherent resilience—such as ECE and AI-driven EdTech—and leveraging minority stakes to maintain flexibility, the firm is well-positioned to generate long-term value. As global demand for quality education intensifies, Lombard Odier’s focus on innovation, scalability, and ESG alignment will likely remain central to its success.

Source:
[1] The future of education is impact investing [https://www.lombardodier.com/contents/corporate-news/rethink-everything/2017/bespoke/the-future-of-education-is-impac.html]
[2] Lombard Odier reports half-year 2025 results [https://www.lombardodier.com/insights/2025/august/lombard-odier-reports-half-year-2025.html]
[3] Ten Investment Convictions for H2 2025 [https://www.lombardodier.com/insights/2025/june/ten-investment-convictions-for-h2-2025.html]
[4] Education | Impact Investing [https://www.lombardodier.com/contents/corporate-news/rethink-everything/2017/monocle/monocle-and-lombard-odier---reth.html]
[5] Acquisitions in the Education & EdTech Sector in 2025 [https://www.jackimwoods.com/acquisitions-in-the-education-edtech-sector-in-2025/]
[6] Private Assets | Lombard Odier Asset Management [https://am.lombardodier.com/home/asset-classes/alternatives/lombard-odier-private-equity-opp.html]
[7] Investing for our children's century [https://www.lombardodier.com/shareholders]
[8] Why Private Equity's Playbook Fails in K-12 EdTech [https://www.edtechdigest.com/2025/02/13/why-private-equitys-playbook-fails-in-k-12-edtech/]