Guild Education Reaches $4.4 Billion Valuation As Labor Market Demands Continue—And A Downturn Threat Rises

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Downturns have historically spelled bad news for investments in employee benefits. But Carlson and her backers sense opportunity, bolstered by structural workforce changes, a shift in employers' view of talent and Guild's plans to invest its new $175 million funding round, first reported by Forbes.

, can’t help but have a fangirl moment about another investor who’s part of the round: Oprah Winfrey.show every day at 4 p.m. as a kid,” says Carlson, whose company plays matchmaker between higher education programs and lower-skilled workers of its business partners—corporations like Walmart, Chipotle and Disney.

But as part of the $175 million round being led by Wellington, which also includes existing backers, these investments help bring Guild’s valuation to $4.4 billion, up from a previous $3.75 billion, amid continued demand by employers to reskill and retain their workforce., will grow to $570 million, based on Carlson’s estimated 14% stake.

“We just hit this massive inflection point where the market—not just the innovative companies, every company—is now saying we have to do this.” He also thinks Guild’s business model has an advantage: Employers pay tuition directly to higher ed partners, who typically pay Guild as students progress, rather than students paying in full upfront and getting reimbursed. “As a leader, if I don't know what the outcome is, there are just so many risks that I can take,” says Chenault, who was CEO of American Express from 2001 to 2017.

One of those healthcare customers, Bon Secours Mercy Health, began working with Guild last year, knowing it wanted to do more to retain and “upskill” workers into high-demand job categories such as nursing. Like nearly all hospital systems amid the pandemic, Bon Secours has struggled with labor shortages; it had to increase hiring by 40% over the past year.

 

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