Private Equity Stakeholder

Project November 2018 ENDEAVOUR CAPITAL’S FAILING GRADE Private equity firm’s investments in for-profit colleges leave many students with little except debt

KEY POINTS • Portland, Oregon-based private equity firm Endeavour Capital has been a perennial investor in for-profit colleges. The for-profit college industry has been criticized for using aggressive sales practices, providing poor quality education while leaving students heavily in debt. • In 2009 Endeavour Capital acquired Texas-based Southern Careers Institute. • Ten years after they had started school, former students of Southern Careers Institute’s Austin campus earned just $20,500 on average1, al- most $5,000 less than the average Austin resident with just a high school SOUTHERN CAREERS INSTITUTE diploma.2 The private equity industry has played a • Southern Careers Institute’s students are predominantly low income key role in driving the growth of for-profit col- students of color. leges that have been criticized for providing • During the academic year ended June 2015 (SCI fiscal year ended poor quality education while leaving students December 2014), Southern Careers Institute violated the US Department heavily in debt. of Education’s 90/10 Rule3 by deriving more than 98% of its revenue, Portland, Oregon-based private equity firm $32.4 million out of $33.0 million, from federal government (Title IV) Endeavour Capital has been one of the more sources, the highest of any for profit college.4 active private equity firms in the space, • Last fall, Southern Careers Institute launched Woz U, an online computer making multiple investments in for-profit col- coding "boot camp" with Steve Wozniak, best known for founding Apple leges over the past several years, including in with Steve Jobs in 1976.5 A recent CBS News investigation detailed Arizona-based Grand Canyon University and complaints by dozens of former students about Woz U.6 Texas-based Southern Careers Institute, • In 2005, Endeavour Capital acquired a significant minority stake in Grand which Endeavour Capital still owns. Endeav- Canyon Education a Christian college that converted from non-profit to our also invested in student debt collector for-profit in 2004. Genesis Financial Services. In acquiring and investing in for-profit • In 2010, Grand Canyon Education agreed to pay $5.2 million to settle a colleges, private equity firms like Endeavour federal False Claims Act (qui tam) suit alleging that Grand Canyon violated Capital have turned to their regular playbook the US Department of Education’s ban on colleges providing incentive of buying companies and layering on debt, compensation to recruiters.7 but in this case, it is the largely the US • In 2012, Endeavour Capital acquired Genesis Financial Solutions, an Ore- government that provides the debt and gon-based consumer finance company that originated and serviced private students, especially low-income students of 8 student loans for now defunct for-profit college chain Corinthian Colleges. color, who end up with that debt, often • In September 2014, the Consumer Financial Protection Bureau sued without having received an education that Corinthian, alleging that the for-profit college chain engaged in an “illegal prepares them for a job. predatory lending scheme,” adding “We believe Corinthian lured in consumers with lies about their job prospects upon graduation, sold high-cost loans to pay for that false hope, and then harassed students for overdue debts while they were still in school.”9

Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

SOUTHERN CAREERS INSTITUTE DRAWS HEAVILY ON FEDERAL AID, Earnings of SCI-Austin student vs. PROVIDES POOR OUTCOMES FOR STUDENTS high school student In 2009 Endeavour Capital founded Tall Oak Learning LLC in partnership with former Corinthian Colleges and Delta Career Education executive Joe Fox. In October 30,000 $25,437 2009 Tall Oak Learning acquired the seven campuses of Southern Careers Institute 25,000 $20,500 (SCI) in Texas.10 20,000 Chad Heath and Dietz Fry of Endeavour Capital serve on the board of Southern 15,000 11 Careers Institute parent Tall Oak Learning. 10,000 5,000 Poor outcomes for Southern Careers Institute students 0 Southern Careers Institute’s growth under Endeavour Capital’s ownership has not Median earnings Median earnings of SCI-Austin of Austin, TX paid off for SCI students. student 10 years resident with after starting just a high Ten years after they had started school, former students of Southern Careers school school diploma Institute’s Austin campus earned just $20,500 on average12, almost $5,000 less than the average Austin resident with just a high school diploma.13 Just 18.9% of Southern Careers Institute-Austin students had paid back any of their federal student loans three years after leaving school, compared to the national average of 46.4%.14 By comparison, students at the public Austin Community College paid substan- tially less in tuition but earned an average salary of $35,700 ten years after they had Share of SCI Revenue from started school. 42% of Austin Community College students had started paying back Federal Sources (Title IV) federal student loans three years after leaving school – lower than the national (fiscal year) average but more than twice as high has at Southern Careers Institute.15 1 98.32%

Southern Careers Institute heavily dependent on low-income students of color 0.95 The impact of for-profit colleges like Southern Careers Institute is not distributed equally. Students from low-income backgrounds and students of color, particularly 0.9 87.45% 88.20% African-American and Latino students, make up a disproportionate share of 87.60% 16 0.85 for-profit college students. 84.31%

Southern Careers Institute’s student population is made up of predominantly low 0.8 income students of color. Two-thirds of Southern Careers Institute students rely on income-based federal 0.75 Pell grants intended for low-income students.17 2010 2011 2012 2013 2014 The majority of Southern Careers Institute students are Latino or African American.18 Southern Careers Institute violated federal rule in drawing on Department of Education funds Southern Careers Institute has aggressively drawn on federal student loan and grant revenue (i.e. Title IV revenue) to fund its operations. US Department of Education Title IV revenue has accounted for at least 87% of Southern Careers Institute’s revenue in all but one year since Endeavour acquired it.19 During the academic year ended June 2015 (SCI fiscal year ended December 2014), Southern Careers Institute violated the US Department of Education’s 90/10 Rule20 by deriving more than 98% of its revenue, $32.4 million out of $33.0 million, from federal government (Title IV) sources, the highest of any for profit college.21

2 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

SOUTHERN CAREERS INSITUTE REVENUE

$40,000,000 $33,897,902 $35,000,000 $33,056,181 $32,777,090 $30,000,000 $32,343,745 $33,030,464

$25,000,000 $26,503,681 $20,000,000 $17,450,378

$15,000,000 $15,398,757 $10,000,000 $11,617,621 $5,000,000 $0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Following early growth, Southern Careers Institute struggles Joe Fox, who served as President and CEO of Southern Careers Institute, reported that he grew SCI’s student population by 170% in first 24 months. In line with that growth, SCI’s revenue grew from $15.4 million in the 2009-2010 academic year to $32.3 million just a year later.22 That rapid growth did not last, though. Southern Careers Institute’s revenue peaked at $33.9 million in 2013-2014 and has since declined by 3.3% to $32.7 million.23 Southern Careers Institute President and CEO Joe Fox left the company in June 2013.24 SOUTHERN CAREERS INSTITUTE’S ONLINE CODING BOOT CAMP “WOZ U” DRAWS CRITICISM Last fall, Southern Careers Institute launched Woz U, an online computer coding “boot camp” with Steve Wozniak, best known for founding Apple with Steve Jobs in 1976.25 A recent CBS News investigation detailed complaints by dozens of former students about the program. One former Woz U student, Bill Duerr, highlighted the students’ concerns: “When you’re doing code and you’re following along, and there’s a typo, and you get an error, you don’t have any idea why you got the error,” Duerr said. “And you’re like how can – did somebody not proofread this? Did somebody not make sure it worked?” Duerr said typos in course content were one of many problems. So-called “live lectures” were pre-recorded and out of date, student mentors were unqualified, and at one point, one of his courses didn't even have an instructor. “I feel like this is a $13,000 e-book,” Duerr said. While it was supposed to be a program written by one of the greatest tech minds of all time, “it’s broken, it’s not working in places, lots of times there’s just hyperlinks to Microsoft documents, to “It is drive, drive, drive Wikipedia,” he said.26 the sales.” CBS also spoke so Tim Mionske, one of the Woz U “enrollment counselors,” who was charged with selling Woz U to prospective students. “It is drive, drive, drive the Former Woz U enrollment 27 counselor Tim Mionske, sales,” Mionske said. October 2018 When confronted by reporters, Wozniak dodged questions about his involvement in the school.28

3 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

The 33-week program cost Duerr $13,200 – including more than $7,000 in federal student loans.29 According to Woz U’s 2018 catalog, “Woz U is unaccredited and is not eligible for federal financial aid programs.”30 As of late 2017, Woz U’s board was chaired by Brent Richardson, former chairman of Grand Canyon University, which Endeavour Capital previously invested in.31 As of February 2018, Richardson’s company, Exeter Education, owned Woz U.32 In October 2017, Richardson told the Arizona Republic that Woz U is routing its students online through Southern Careers Institute, which is accredited by the Commission of the Council on Occupational Education.33 Southern Careers Institute’s accreditation enables Woz U to draw on federal student loan and grant funds.34 “Like many other ENDEAVOUR CAPITAL HELPED LAUNCH GRAND CANYON UNIVERSITY’S STUDENT for-profit colleges, DEBT MACHINE Southern Careers Institute is not the first for-profit college that Endeavour Capital Grand Canyon invested in. recruiting documents In 2005, Endeavour Capital acquired a significant minority stake in Grand Canyon Education, the parent company of Grand Canyon University, a Christian college that taught methods to converted from non-profit to for-profit in 2004.35 uncover prospective Endeavour Capital managing directors Chad Heath and Mark Dorman served on students’ pain and Grand Canyon Education’s board of directors.36 Grand Canyon Education went public in November 2008.37 Endeavour Capital pleasure points.” 38 remained an investor in Grand Canyon Education until at least 2011. US Senate Committee of Health, Following Grand Canyon University’s conversion to for-profit status and Endeav- Education, Labor and Pensions our’s 2005 investment, the college’s enrollment skyrocketed, growing from 4,500 analysis, 2012 students in 2004 to more than 42,000 in 2010. The vast majority of Grand Canyon University’s students were enrolled in online programs.39 Grand Canyon University’s breakneck growth was largely funded by drawing on increasing amounts of US Department of Education federal student aid (Title IV) loans and grants. During the 2006-2007 award year, Grand Canyon Education utilized $121 million in Department of Education student loan and grant funds. By 2010-2011, the for-profit college chain utilized more than four and a half times that, or $564 million in Department of Education Title IV funds.40

ENROLLMENT AT GRAND CANYON EDUCATION, INC. 2011 - 2010

45,000 42,300 40,000 35,000 34,200 30,000

25,000 22,000 20,000 15,000 13,415 10,297 10,000 7,969 4,491 5,000 4,113 3,973 3,091 0 Fall 2001 Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010

4 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

Federal student loans and grants accounted for an increasing share of Grand Canyon Education’s overall revenue, growing from 74% of revenue during the 2007- 2008 award year to 85 percent of revenue in 2010-2011.41 Grand Canyon University spends heavily on marketing Grand Canyon Education spent heavily on marketing to recruit new students. A 2012 investigation by the US Senate Committee on Health, Education, Labor and Pensions found that in 2009, Grand Canyon allocated 32.6 percent of its to revenue to marketing and recruiting, the second high- Grand Canyon Education Federal est percentage of the fifteen for profit college companies the US Student Aid (Title IV) Revenue Senate committee examined. On average, those fifteen for profit ed- ucation companies spent 22.6 percent of their revenue on marketing $600,000,000 $564,187,328 42 in 2009. $500,000,000 $480,453,302

The US Senate Committee report detailed Grand Canyon’s aggres- $400,000,000 $362,042,717 sive recruiting: $300,000,000 “Recruiters at Grand Canyon were expected to make 80-89 phone $200,000,000 $198,437,853 $121,102,477 calls a day to prospective students. They were encouraged to create $100,000,000 a sense of urgency and “assume that NOW is a good time to talk with 0 the student.” Grand Canyon counseled recruiters to “use the FERN 2006-07 2007-08 2008-09 2009-10 2010-11 [Frustrations, Effects, Rewards, and Next Steps] technique to uncover a student[’s] motivation, the need for earning the degree and paint a picture of two futures: with a degree and without a degree.” Like many other for-profit colleges, Grand Canyon recruiting documents taught methods to uncover prospective stu- dents’ pain and pleasure points. “The strongest, most basic force is avoiding or over- coming a threat or pain,” one training presentation tells employees, “For a prospective student to need a solution, this need must be propelled by the desire to avoid or overcome an existing problem.” The training encouraged asking “probing questions, which slowly peel away pain layers.”43 Grand Canyon University % of Revenue Grand Canyon spent $2,177 per student on instruction in 2009, compared from Federal Student Aid to $3,389 per student on marketing. In contrast, public and non-profit 4-year 86.0$ colleges and universities generally spend a higher amount per student on 84.9% 84.0% instruction while community colleges spend a comparable amount but 82.0% 82.5% charge far lower tuition than for-profit colleges. In 2010, with 42,300 80.0% students, Grand Canyon employed 1,065 recruiters, 3 career services 78.0% 78.6% 44 employees and 478 student services employees. 76.0% Grand Canyon pays $5.2 million to settle suit over marketing practices 74.0% 74.0% 72.0% Grand Canyon Education’s aggressive marketing practices led a whistle- 70.0% 69.0% blower, Ronald Irwin, to file a federal False Claims Act (qui tam) suit against 68.0% the company in 2007 alleging that Grand Canyon Education violated the US 2006-07 2007-08 2008-09 2009-10 2010-11 Department of Education’s ban on colleges providing incentive compensation to recruiters.45 Under Department of Education regulations, schools that receive federal financial aid are not allowed to tie recruiters’ pay to the number of students they enroll. The rules were designed to protect students from aggressive sales tactics and the government from loan defaults.46 In 2010, Grand Canyon Education agreed to pay $5.2 million to settle the False Claims Act suit.47

5 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

HAVING SPURRED SUBSTANTIAL STUDENT DEBT, ENDEAVOUR CAPITAL BOUGHT A DEBT COLLECTOR “We believe Corinthian Endeavour Capital has not only invested heavily in for-profit colleges, but also in- vested in a debt collector that serviced for-profit college student debt. lured in consumers In 2012, Endeavour Capital acquired Genesis Financial Solutions, an Oregon- with lies about their job based consumer finance company that originated and serviced private student loans for now defunct for-profit college chain Corinthian Colleges.48 As of March 2014, prospects upon gradua- about 74,000 students were enrolled at Corinthian Colleges’ Heald, Everest, and tion, sold high-cost 49 WyoTech schools. loans to pay for that Stephen Babson and Leland Jones of Endeavour Capital serve on Genesis Finan- cial Services’ board.50 false hope, and then ha- In September 2014, the Consumer Financial Protection Bureau sued Corinthian, rassed students for alleging that the for-profit college chain engaged in an “illegal predatory lending scheme,” adding “We believe Corinthian lured in consumers with lies about their overdue debts...” job prospects upon graduation, sold high-cost loans to pay for that false hope, and Richard Cordray, then harassed students for overdue debts while they were still in school.”51 Director, Consumer Financial Pro- According to internal Corinthian documents, most students lived in households tection Bureau (CFPB), September 2014. with very low income.52 In 2013, the tuition and fees for an associate’s degree at Corinthian Colleges was between $33,000 and $43,000. The tuition and fees for a bachelor’s degree was between $60,000 and $75,000. Tuition at a Corinthian school was much higher than the federal loan limit, which left most students no choice but to take out private student loans to make up the difference.53 To close the gap, Corinthian offering students its own private “Genesis loans.” These loans were more than twice as expensive as federal student loans.54 Corinthian admitted to stock analysts in February 2011 that it increased tuition 11 percent in part to comply with the 90-10 rule. Students would have to turn to Genesis to cover the cost.55 In September 2014, Consumer Financial Protection Bureau Director Richard Cor- dray said of Corinthian’s Genesis loans: “Unlike federal student loans and almost all private student loans, Genesis loan payments were due immediately after starting classes. Students who fell behind on these in-school payments, but wanted to complete their education, had to endure Corinthian’s harassing and bullying debt-collection methods at the same time. The alternative was dropping out of college, which meant they would be left with all of the debt but with no degree to show for it. Getting students to repay these loans while they were still in school was important to Corinthian’s business model. Our investigation found that Corinthian paid bonuses based in part on how well its staff got students to pay up. Among their tactics, they used public and private shaming − such as pulling students from class, and inform- ing instructors about the overdue debts. Students were asked to meet with campus presidents to discuss why they were late on their payments. At one Georgia campus, a financial aid staff member was called the “Grim Reaper” for removing so many students from class.

6 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

At Corinthian schools, students were put in jeopardy of losing their education if they did not repay their private loans. Our investigation found that students were denied computer access, blocked from signing up for classes, prevented from buy- “Certainly anyone in ing books, and they even had their diplomas held hostage unless they paid up.” the consumer finance The over-representation of students of color was even more extreme at Corinthian Colleges that at for-profit colleges generally: an analysis of Corinthian’s 2014 enroll- industry knows that ment numbers shows that people of color comprised the majority (62 percent) of targeting subprime its students, women comprised 71 percent of its students, and African-American women comprised 26 percent.56 borrowers with a Genesis founder Irving Levin minimized Genesis’ role, saying Corinthian was program that has a always obligated to buy all the Genesis loans originated by his company. And Corinthian set the terms, he said. “We were strictly a contractor,” Levin said. 60 percent default rate “We got paid a few bucks for every loan we originated and serviced.”57 is a problem. The In an November 2014 Oregonian article on Genesis Financial Services’ role in the phrase is ‘debt trap.’” Corinthian Colleges loans, Maura Dundon, an attorney for the Center for Responsible Lending said, “Certainly anyone in the consumer finance industry knows that tar- Maura Dundon, geting subprime borrowers with a program that has a 60 percent default rate is a Center for Responsible Lending, November 2014. problem,” she said. “The phrase is ‘debt trap.’”58 In 2014, the US Department of Education restricted Corinthian Colleges’ access to federal student loans.59 Genesis Financial Solutions cut ties with Corinthian Colleges in 2014.60 In early 2015, Zenith Education Group bought 56 of Corinthian’s locations across the country. As a condition of the sale, Corinthian agreed to forgive $480 million in student loan debt.61

7 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230 Endeavour Capital’s Failing Grade

Endnotes 1 VA GI Bill Comparison Tool profile for Southern Careers Institute-Austin, accessed June. 33 “Woz U: AZ state regulators have questions, key paperwork unfinished,” Arizona Republic, Oct 28, 2017. 2 Based on estimated earnings of $25,437 in for a high school graduate in Austin, Texas, US Census Bureau American Community Survey 2015. 34 “Woz U: AZ state regulators have questions, key paperwork unfinished,” Arizona Republic, Oct 28, 2017. 3 “New Analysis Finds Many For-Profits Skirt Federal Funding Limits,” US Dept of Education, Dec 21, 2016. 35 Grand Canyon Education prospectus, Nov 20, 2008. 4 Proprietary School Revenue Percentages Report for Financial Statements with Fiscal Year 36 Grand Canyon Education 2011 Form DEF 14A Ending Dates Between 07/01/14 –06/30/15, US Dept of Education. 37 Grand Canyon Education prospectus, Nov 20, 2008. 5 “Some former students, employees say Apple co- founder's Woz U doesn't live up to 38 Grand Canyon Education 2011 Form DEF 14A promises,” CBS News, Oct 1, 2018. 39 Grand Canyon Education, US Senate Committee on Health, Education, 6 “Some former students, employees say Apple co- founder's Woz U doesn't live up to Labor and Pensions, 2012. promises,” CBS News, Oct 1, 2018. 40 Proprietary School Revenue Percentages Report for Financial Statements with Fiscal 7 “Grand Canyon University officially settles $5.2 mil lawsuit,” Year Ending Dates Between 07/01/06 –06/30/11, US Dept of Education. Arizona Republic, Aug 18, 2010. 41 Proprietary School Revenue Percentages Report for Financial Statements with Fiscal 8 “Corinthian, giant for-profit college with 900 local students, accused of running predatory Year Ending Dates Between 07/01/06 –06/30/11, US Dept of Education. student loan program,” The Oregonian, Nov 20, 2014. 42 Grand Canyon Education, US Senate Committee on Health, Education, Labor and 9 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement Pensions, 2012. Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 43 Grand Canyon Education, US Senate Committee on Health, Education, Labor and 10 Joe W. Fox LinkedIn profile, accessed June 16, 2018. Pensions, 2012. 11 https://endeavourcapital.com/team/dietz-fry/, accessed Nov 7, 2018. 44 Grand Canyon Education, US Senate Committee on Health, Education, Labor and 12 VA GI Bill Comparison Tool profile for Southern Careers Institute-Austin, Pensions, 2012. accessed Oct 14, 2017 45 “Grand Canyon University officially settles $5.2 mil lawsuit,” 13 Based on estimated earnings of $25,437 in for a high school graduate in Austin, Texas, Arizona Republic, Aug 18, 2010. US Census Bureau American Community Survey 2015. 46 “Grand Canyon University officially settles $5.2 mil lawsuit,” 14 VA GI Bill Comparison Tool profile for Southern Careers Institute-Austin, Arizona Republic, Aug 18, 2010. accessed Oct 14, 2017. 47 “Grand Canyon University officially settles $5.2 mil lawsuit,” 15 College Scorecard, US Dept of Education, accessed Nov 16, 2018. Arizona Republic, Aug 18, 2010. 16 “Do Students of Color Profit from For-Profit College?” 48 “Corinthian, giant for-profit college with 900 local students, accused of running predatory Center for Responsible Lending, Oct 2014. student loan program,” The Oregonian, Nov 20, 2014. 17 College Navigator, National Center for Education Statistics, accessed Nov 8, 2018. 49 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 18 College Navigator, National Center for Education Statistics, accessed Nov 8, 2018. 50 https://endeavourcapital.com/team/stephen-babson/, 19 During the 2010-2011 award year, federal Title IV revenue accounted for 84.3% of https://endeavourcapital.com/team/leland-jones/, accessed Nov 7, 2018. Southern Careers Institute Revenue. Proprietary School Revenue Percentages Report for Financial Statements with Fiscal Year Ending Dates Between 07/01/10 –06/30/11, 51 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement US Dept of Education. Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 20 “New Analysis Finds Many For-Profits Skirt Federal Funding Limits,” 52 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement US Dept of Education, Dec 21, 2016. Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 21 Proprietary School Revenue Percentages Report for Financial Statements with Fiscal 53 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement Year Ending Dates Between 07/01/14 –06/30/15, US Dept of Education. Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 22 Proprietary School Revenue Percentages Report for Financial Statements, 54 “Prepared Remarks of CFPB Director Richard Cordray on the Corinthian Enforcement US Dept of Education. Action Press Call,” Consumer Financial Protection Bureau, Sept 16, 2014. 23 Proprietary School Revenue Percentages Report for Financial Statements, 55 “Corinthian, giant for-profit college with 900 local students, accused of running predatory US Dept of Education. student loan program,” The Oregonian, Nov 20, 2014. 24 Joe W. Fox LinkedIn profile, accessed June 16, 2018. 56 Analysis of National Center for Education Statistics, “Integrated Postsecondary Education Data System,” available at https://nces.ed.gov/ipeds/datacenter (last accessed October 25 “Some former students, employees say Apple co- founder's Woz U doesn't live up to 2016), examining 12-month 2014 enrollment by race/ethnicity. promises,” CBS News, Oct 1, 2018. 57 “Corinthian, giant for-profit college with 900 local students, accused of running predatory 26 “Some former students, employees say Apple co- founder's Woz U doesn't live up to student loan program,” The Oregonian, Nov 20, 2014. promises,” CBS News, Oct 1, 2018. 58 “Corinthian, giant for-profit college with 900 local students, accused of running predatory 27 “Some former students, employees say Apple co- founder's Woz U doesn't live up to student loan program,” The Oregonian, Nov 20, 2014. promises,” CBS News, Oct 1, 2018. 59 “Sale of controversial for-profit college Corinthian includes massive student debt forgive- 28 “Some former students, employees say Apple co- founder's Woz U doesn't live up to ness,” The Oregonian, Feb 3, 2015. promises,” CBS News, Oct 1, 2018. 60 “Corinthian, giant for-profit college with 900 local students, accused of running predatory 29 “Some former students, employees say Apple co- founder's Woz U doesn't live up to student loan program,” The Oregonian, Nov 20, 2014. promises,” CBS News, Oct 1, 2018. 61 “Sale of controversial for-profit college Corinthian includes massive student debt 30 Woz U 2018 catalog, effective Feb 1, 2018. forgiveness,” The Oregonian, Feb 3, 2015. 31 “Woz U: AZ state regulators have questions, key paperwork unfinished,” Arizona Republic, Oct 28, 2017. 32 Woz U 2018 catalog, effective Feb 1, 2018.

8 Private Equity Jim Baker Stakeholder [email protected] Project 312.933.0230