How much for PHEAA?
If Sallie Mae is worth $25 Billion, PHEAA (which has about 1/10th the assets as Sallie Mae and about 1/20th the gross revenue) could be worth between $1.7 billion and $3.5 billion as a private firm.
Sallie Mae offered $1 billion to take over PHEAA in 2004.
1 comment:
The thing about private equity investors is their desire for an exit point so that their investment gain can be monetized. They create this value usually by restructuring their investments. We surmise that Sallie Mae will be broken apart and sold. Sallie will likely not exist in it's present form.
A PHEAA sale, although bringing a potential windfall to the state of PA, would likely suffer the same. And the original intention of PHEAA would cease to exist: serve as a financing vehicle for PA students to attain a college education.
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