Dream Center, blaming EDMC, turns to foundation with ties to private equity to revive Art Institutes – Pittsburgh Post-Gazette
The nonprofit group that acquired the Art Institute schools in 2017 wants to sell to another nonprofit with links to a private equity firm, claiming that both revenue and cost projections were inaccurate when it made the deal.
The Dream Center Foundation, a Los Angeles-based charitable organization, bought the Art Institutes, South University and Argosy University from Pittsburgh-based Education Management Corp. in a $60 million deal — granting the formerly for-profit colleges a new nonprofit status.
But in recent weeks, Dream Center told regulators it can not continue to run the schools and it proposed replacing its ownership with that of another nonprofit called Education Principle Foundation that tax filings show has been run by managing partners at a New York City private equity firm.