Jacobs Capital’s plans to sell a substantial stake in Cognita, the €6bn global private schools group, face collapse after negotiations with Blackstone and CVC stalled, according to sources cited by the Financial Times.

The proposed transaction would have given the buyer joint control alongside Jacobs, which became Cognita’s majority owner in 2018 after acquiring the business from Bregal and KKR in a deal valuing the company at £2bn. Minority shareholders include BDT & MSD and Sofina.

Cognita runs more than 100 fee-paying schools across 20 countries, including 38 in the UK. However, uncertainty surrounding the Labour government’s new 20% tax on school fees, coupled with a gap between buyer bids and Jacobs’ valuation, has complicated the process.

The faltering sale underscores broader difficulties in marketing large private equity-owned businesses in Europe, where M&A and IPO activity remain muted compared with the US. Yet investor appetite for education remains strong. Private schools are seen as offering reliable revenues, with wealthy families continuing to pay fees even in times of economic stress.

Other recent moves highlight this trend: EQT opted last year to bring in a new investor for its $14.5bn schools group Nord Anglia, underlining the sector’s long-term appeal to private equity backers.

Cognita, co-founded in 2004 by former Ofsted chief Sir Chris Woodhead, operates schools across markets including the UK, US, UAE, Brazil, Mexico, and Thailand.

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