University of Phoenix Goes Public : Insights on the Phoenix Education Partners PXED IPO

*Update - IPO priced at $32.00 for 4.25M shares. Trading opens October 9, 2025

Phoenix Education Partners, Inc. filed its amended S-1 with the SEC, signaling its official intent to go public. This IPO will offer investors exposure to a well-positioned player in the for-profit education sector.

Widely known for their subsidiary, University of Phoenix., the company will be converted into a Delaware corporation prior to the offering, streamlining its legal structure for public market operations.

Stock Ticker and Exchange

• Ticker Symbol: PXED

• Exchange: New York Stock Exchange (NYSE)

Number of Shares Offered

• Total Shares: 4,250,000 common shares

• All shares are being sold by existing stockholders

• Over-allotment option: 637,500 additional shares may be offered within 30 days

Expected Offering Price

The IPO is expected to price between $31.00 and $33.00 per share.

Company Operations and History

Phoenix Education Partners, through its subsidiaries, operates a diversified platform of career-focused education brands, largely in the online and hybrid education space. It caters to adult learners and professionals seeking to upskill, reskill, or earn credentials aligned with in-demand job markets.

Its core offerings include:

• Degree programs in healthcare, IT, and business

• Short-form certificates and bootcamps in emerging fields like cybersecurity and data analytics

• Partnership-driven program management with universities and employers

Though it’s now rebranding, the entity behind PXED has operated in the education services market for several years, evolving its delivery model alongside broader shifts in higher ed demand. The transition to the Phoenix Education Partners name reflects an intent to unify its services under a modern, growth-oriented identity.

The company has benefited from growing industry trends such as:

• The decline of traditional four-year degrees

• Employer-backed education benefits

• The rise of skills-first hiring

Conversion and Reorganization: From Queso Holdings to PXED

Before the IPO becomes effective, AP VIII Queso Holdings, L.P. will convert into a corporation and change its name to Phoenix Education Partners, Inc.

As a result:

• Existing limited partners will become shareholders

• The reorganization supports compliance with corporate reporting and governance structures

• Financials included in the filing reflect operations of the limited partnership prior to conversion

This type of conversion is not uncommon for private equity-backed entities preparing for public life.

Ownership Structure: Apollo's Controlling Interest

Key Ownership Points

• AP VIII Socrates Holdings, L.P., an Apollo affiliate, is the majority stockholder

• After the IPO, Apollo will maintain 71% voting power (70% with full exercise of the over-allotment)

• This means PXED qualifies as a controlled company under NYSE listing rules

Controlled Company Implications

PXED may opt out of:

• Majority independent board structure

• Independent nominating and compensation committees

Investors in PXED should be aware that Apollo will retain significant strategic and operational control post-IPO.

Underwriters Behind the Deal

A robust underwriting syndicate is supporting the offering, led by:

• Lead Underwriters: Morgan Stanley, Goldman Sachs & Co. LLC, BMO Capital Markets, Jefferies

• Co-Managers and Additional Underwriters: Apollo Global Securities, Truist Securities, B. Riley Securities, Barrington Research, Loop Capital Markets, Academy Securities, Bancroft Capital, Siebert Williams Shank

Use of Proceeds

Importantly, PXED will not receive proceeds from this offering. All shares are being sold by existing stockholders.

This is strictly a secondary offering, meaning:

• It provides liquidity to early investors (e.g., Apollo affiliates)

• No funds are earmarked for expansion, R&D, or acquisitions

Financial Performance and Future Outlook

Although full financials are provided in the S-1 filing, here are some critical insights:

Current Financials

• PXED reported consistent revenue growth in the education segment, driven largely by its online and hybrid offerings

• Operating income has remained stable, despite ongoing investment in platform upgrades and partner integrations

• The company operates with relatively low debt, thanks to past private equity support, and shows a path toward positive free cash flow

Projected Financials

While projections are not explicitly stated in the prospectus, management points to:

• Continued expansion of university partnerships and employer-backed programs

• Increased margin efficiency as legacy systems are retired in favor of cloud-based platforms

• Strong pipeline in short-form and non-degree credentials, which are higher margin than traditional programs

In short, PXED is positioning itself as a scalable, tech-enabled education provider targeting the fast-growing adult learner segment.

Risk Factors to Consider

Before investing in PXED, consider the following:

• Apollo’s control limits the influence of minority shareholders

• IPO pricing could be volatile due to no public trading history

• Reliance on tuition revenue may fluctuate with economic cycles

• Education policy and accreditation changes can impact compliance and operations

These are highlighted in the “Risk Factors” section of the prospectus and should be reviewed in detail.

Investor Takeaways

Phoenix Education Partners is entering the public arena with a focused, scalable education model and strong backing from Apollo. While its core business is well-aligned with workforce trends, its governance structure and use of proceeds might give some investors pause.

To summarize:

• PXED provides access to a high-growth education segment

• Its business model emphasizes partnerships, online delivery, and career-aligned programs

• The IPO allows early investors to exit, not fund new initiatives

• Apollo will remain in control post-listing

This may be a solid opportunity for long-term investors comfortable with a controlled company framework.

Final Thoughts

The Phoenix Education Partners IPO isn’t your average tech listing. It’s a well-established, revenue-generating business in a critical sector, with deep ties to private equity and a structure designed for efficiency and scale.

That said, potential investors should weigh the pros of growth and sector alignment against the cons of Apollo’s control and lack of proceeds reinvestment. For anyone looking to gain exposure to workforce-driven education companies, PXED is one to watch.

Frequently Asked Questions

What is Phoenix Education Partners, Inc.?

It’s a rebranded education services company previously operating as AP VIII Queso Holdings, L.P. It specializes in online learning, bootcamps, and degree programs.

How many shares are being offered?

4.25 million, with an additional 637,500 available via the underwriters' option.

What’s the expected share price?

Between $31.00 and $33.00 per share.

Does PXED get any proceeds from the IPO?

No. All shares are being sold by current investors.

What does “controlled company” status mean?

Apollo retains over 70% of voting power, so PXED can bypass some NYSE governance requirements.

Is PXED profitable?

The company shows improving financial metrics and is moving toward free cash flow positivity.

Where will it trade?

On the NYSE under the ticker PXED.

Financial Disclaimer:

This article is for informational purposes only and does not constitute financial, investment, or legal advice. Readers should conduct their own research or consult with a licensed financial advisor before making any investment decisions. Investing in IPOs involves significant risks, including the risk of loss.

University of Phoenix Education PXED IPO

University of Phoenix Education PXED IPO