Q3 2023 Pre-Professional Learning Update

1.Houlihan Lokey Overview32.The Pre-Professional Learning Ecosystem63.Tailwinds in the Pre-Professional Learning Market13Appendix21 Page 1.Houlihan Lokey Overview32.The Pre-Professional Learning Ecosystem63.Tailwinds in the Pre-Professional Learning Market13Appendix21 Houlihan Lokey Is the No. 1 M&A Advisor for Global Transactions Under $1 Billion G L O B AL S E L L S I D E M & A E X E C U T I O N B O L S T E R E D B Y L O C ALP R E S E N C E T H E L E AD I N G M & A AD V I S O R , D R I V E N B Y I N D U S T R Y E X P E R T I S E No. 1 M&A advisor for all U.S. transactions.Closed 1,600+ M&A deals in the past five years. 36 offices in the Americas, Europe, the Middle East, and Asia-Pacific.370+ cross-border deals since 2011.Outstanding track record with international investors, both on sellside and buysidetransactions. F U L L Y I N T E G R AT E D D E B T C AP I T AL M AR K E T SC O V E R AG E T E AM Largest dedicatedalternative investorcoverage team in theindustry with uniqueintelligence tooptimize HoulihanLokey sellsideprocesses. Global team of ~90professionals across 11offices in five countries.Senior-level contact with allmajor credit investors.$25B capital raised in thepast two years. Dedicated coverage of 1,000+funds provides proprietarydata and knowledge of buyerbehavior. In the past five years, 700+ private equity firms have chosen HoulihanLokey to advise on M&A or capital raising for their portfolio companies. Our integrated project teams work hand in hand from day one and are fully aligned to deliver outstanding results for our clients. Training & Education Practice Global Leadership 1.Houlihan Lokey Overview32.The Pre-Professional Learning Ecosystem63.Tailwinds in the Pre-Professional Learning Market13Appendix21 Defining the Pre-Professional Learning Ecosystem Pre-professional learning refers to learning pathways that provide a bridge from secondary school to the workforce. These pathwaysinclude (i) college and career readiness providers; (ii) alternative credential providers; and (iii) a higher education pathway. ›Post-Secondary Planning›Career Course and Certification Providers›Career Info/Guidance and Mentorship›Aptitude and Career Assessment COLLEGE ANDCAREER READINESS ›Middle Skills Training›Skilled Trades Training›Technology Bootcamps›Hire, Train, Deploy (HTD) Models ALTERNATIVE CREDENTIALPROVIDERS ›Enrollment and Student Services›Curriculum Management›Online Program Managers (OPMs)›Postgraduate/Alumni Services HIGHEREDUCATION The Pre-Professional Ecosystem Houlihan Lokey’s Sector Landscape Investment opportunities in the pre-professional sector consist of learning providers, with the exception of the higher education pathway,in which education services providers represent the predominant opportunity. Secular Shift in U.S. Higher Education Landscape These secular changes are creating a host of compelling opportunities for investors in the training and education sector. Apr-23 Feb-23 The Reckoning Is Here: More ThanOne-Third of Community CollegeStudents Have Vanished Apr-23 Feb-23 As ‘Skills-Based Hiring’ Becomes Allthe Rage, These Education LeadersWant to Overturn a 117-Year-Old Way ofMeasuring Students’ Experiences Apr-23 Mar-23 Oct-22 The New-Collar Workforce Why Students Are Not Enrolling inHigher Education College Enrollment Losses Continue,But at a Slower Rate Rapid Changes in the Nature of Work Are Altering Entry-LevelLearning Pathways to the Workforce There is a widening gap between the skill requirements of jobs of the future and the skill levels of the workforce. By 2027: Traditional higher education is unable to meetthe requirements of the changing labor marketskilling needs. The pace of technology adoption isaccelerating and disrupting the globalworkforce. ›83 million(1)jobs may be displacedbya shift in the division of labor betweenhumans and machines. ›Slow to reactto changes in the labormarket.›Low annual throughput—insufficientsupply of new age vocations.›Not structured to provide short-termupskilling.›High cost. ›E.g., Cloud computing, automation,AI, big data, encryption, nonhumanoidrobots, etc. ›69 million(1)new roles may emergethat are more adapted to the newdivision of labor between humans,machines, and algorithms. MA R K ET R ESPONSES: ›Higher education services providersare being embraced by higher education institutions as a means of increasing enrollments andstudent retention, operational efficiency, and relevance to learners. ›Alternative credential providersare increasing in popularity and gaining credibility with both learners and employers. College and career readiness providersare emerging to help learners prepare for and navigate academic and career pathways. Career Pathways Scorecard Higher education enjoys a multi-century legacy as the bonafide entry-level career pathway; however, alternative credential providers arebetter suited for a rapidly changing workplace. Structural misalignment with job m