Over the pond and under the surface: The high stakes of investing in US education

Policy shifts under the Trump administration have reenergised the education sector, creating huge opportunities for international partnerships and investment. These include the expansion of charter schools, state voucher programmes, and the deregulation of universities, moves which increase access to federal funding, simplify accreditation, and offer greater flexibility in admissions.

But for international investors eyeing the US, success stateside hinges on more than just institutional prestige or capital. It requires a deep understanding of the operational environment, including at the local level.

The increasing politicisation of education in the US, particularly around issues like parental rights, curriculum choices, and diversity and inclusion policies, threatens to entangle foreign investors in partisan controversy. Culture, politics, and regulation vary sharply – not just between states, but even between neighbouring districts. What works in upstate New York may backfire in Texas. Misreading these dynamics could have a direct effect on your bottom line.

In recent years, even well established international and independent schools and universities in the US have faced enrollment declines and licensing issues after aligning with controversial partners or implementing programmes out of step with local sentiment. Several private and charter schools have already become embroiled in debates over race, gender, and ideological content, with backlash from parents and in the media.  

Just last week, Harvard University risked losing $9 billion in federal funding and its ability to enrol international students, after the Trump administration accused it of failing to combat antisemitism and reform hiring and admissions practices.

In today’s hyper-politicised climate, trust can evaporate quickly, and very publicly. With global attention fixed on these issues, the risk of reputational fallout spreading across a broader education portfolio is significant. Protecting your brand through granular, locally informed insight should be a strategic imperative, not an afterthought.

Few can afford to misstep in such an aggressively competitive landscape. The pace of deal making in the US is fast and the windows of opportunity don’t stay open for long. Whether it’s making an acquisition, negotiating a partnership or franchise deal, coordinating a new build, or even receiving a donation, Understanding who and what you’re dealing with isn’t just about risk mitigation; it’s about seizing an opportunity before somebody else does.Those who fail to do so risk being out-paced, or even shut out entirely.

As the first boys and girls in boaters arrive on Long Island this autumn, Harrow New York will be closely watched as it navigates one of the world’s most dynamic, and demanding, education markets. The stakes are high. But for those armed with the right local insight, so is the potential reward.