Education Management Corporation
Corporate brand
UnclaimedEducation Management Corporation was a U.S.-based operator of for-profit post-secondary schools, including The Art Institutes, Argosy University, Brown Mackie College, and South University.
Last updated August 26, 2026
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Overview
Education Management Corporation (EDMC) was a Pittsburgh-based education company that operated post-secondary institutions in the United States and Canada. Founded in Pennsylvania in 1962, it entered education operations through the 1969 acquisition of the Art Institute of Pittsburgh and later developed a portfolio spanning creative arts, business, health sciences, information technology, education, law, and related professional fields. Its schools offered certificates, diplomas, associate degrees, bachelor's degrees, master's degrees, and doctoral programs, both on campus and online. EDMC expanded substantially through acquisitions. It acquired Argosy Education Group in 2001, adding Argosy University and programs in areas such as business, education, and law. In 2003 it acquired South University and a group of schools that were subsequently developed under the Brown Mackie College name. The company also opened and acquired additional Art Institutes across the United States and Canada. At its peak around 2011, EDMC operated approximately 110 schools and served about 158,300 students through its principal divisions: Argosy University, The Art Institutes, Brown Mackie College, and South University. The company benefited from the expansion of online education and from public funding streams supporting students at eligible institutions. Its schools received substantial revenue connected to federal Title IV programs, military education benefits, and veterans' assistance. EDMC's growth model and recruitment practices nevertheless attracted sustained criticism from students, former employees, regulators, journalists, and policymakers. Critics questioned the value and affordability of some programs, the level of spending on recruiting and marketing, student outcomes, accreditation performance, and compliance with federal restrictions on incentive-based recruiter compensation. After 2011, EDMC experienced falling enrollment, campus closures, layoffs, regulatory pressure, accreditation difficulties, and severe financial deterioration. The company's shares lost nearly all of their value, it was delisted from NASDAQ in 2014, and its credit quality declined sharply. A 2015 federal and state settlement resolved claims that the company had unlawfully tied recruiter compensation to enrollment numbers. EDMC subsequently reduced its operations and sold or closed much of its school portfolio. In 2017, it transferred its remaining Art Institutes, South University, and Argosy University operations to the Dream Center Foundation, while remaining Brown Mackie campuses were sold to Ross Medical Education Center. EDMC filed for Chapter 7 bankruptcy in June 2018 and began liquidating its remaining assets. Former EDMC institutions later appeared among schools covered by a federal student-loan cancellation settlement concerning alleged borrower fraud and misconduct.
History
Education Management Corporation was incorporated in Pennsylvania in 1962, although its operating history began in the education sector with the 1969 purchase of the Art Institute of Pittsburgh. The company initially concentrated on art and design education. By the late 1990s it had expanded the Art Institutes network and served thousands of students through a growing group of schools. In 2001, EDMC acquired Argosy Education Group. The transaction broadened its academic portfolio beyond art and design into business, education, psychology, and law-related fields. In 2003, EDMC acquired South University and a collection of schools operated by American Education Centers. Those schools were later rebranded as Brown Mackie College, creating a portfolio that included health sciences, business, legal studies, information technology, and design technology. A major ownership change occurred in 2006, when Goldman Sachs, Providence Equity Partners, and Leeds Equity Partners acquired EDMC in a leveraged buyout. The company was taken private in June of that year. During the following period, EDMC invested in new campuses and online delivery. Changes to federal policy concerning the proportion of online enrollment permitted for continued access to federal aid also supported expansion of its distance-learning business. Todd S. Nelson became chief executive in 2007, and EDMC returned to the public markets in 2009 through a NASDAQ offering, while Goldman Sachs retained a substantial ownership position. The company's enrollment growth reached a high point around 2011. EDMC then operated roughly 110 schools and enrolled approximately 158,300 students. Its scale was accompanied by growing scrutiny. Investigative reporting and the documentary “Educating Sergeant Pantzke” highlighted concerns about student support and the value of certain programs. Former employees and government authorities also challenged recruitment and compensation practices, particularly whether recruiters were rewarded according to the number of students they enrolled in violation of federal restrictions. From 2012 onward, enrollment declined. EDMC attributed part of the decline to economic conditions and changes to federal lending, including tighter PLUS Loan rules. Anticipated and revised gainful-employment requirements created additional uncertainty. The company paused expansion, announced a tuition freeze, reduced its workforce, and began closing campuses. Between 2013 and 2016, it closed or scheduled the closure of numerous Art Institutes and Brown Mackie College locations. Accreditation problems also intensified; in 2016, the Southern Association of Colleges and Schools placed nine Art Institute campuses and all 15 South University campuses on probation. EDMC's financial condition deteriorated alongside its operating contraction. Its stock lost approximately 99.9 percent of its value by 2014, the company was delisted from NASDAQ in November 2014, and its debt was downgraded to highly distressed levels. Edward West resigned as chief executive in August 2015. In November 2015, EDMC agreed to a $95.5 million settlement with federal and state authorities over allegations involving illegal incentive compensation for recruiters. The company did not admit liability as part of the settlement described in public accounts. In 2017, EDMC disposed of most of its remaining educational operations. The Dream Center Foundation acquired the existing Art Institutes, South University, and Argosy University operations, while Brown Mackie campuses were sold to Ross Medical Education Center. These transactions did not restore EDMC as a significant operating education group. EDMC filed for Chapter 7 bankruptcy in June 2018 and entered liquidation. Later borrower-relief proceedings included former EDMC schools among institutions associated with alleged misconduct; a 2022 settlement provided for cancellation of certain federal student loans, and the Supreme Court allowed the settlement to proceed in 2023.
- 2018
Chapter 7 bankruptcy
[1]EDMC filed for Chapter 7 bankruptcy and began liquidation.
- 2017
Major school portfolio transferred
[1]EDMC transferred Art Institutes, South University, and Argosy University operations to the Dream Center Foundation.
- 2015
Recruitment-practices settlement
[2]Federal and state authorities announced a $95.5 million settlement concerning alleged unlawful recruiter incentive compensation.
- 2009
Returned to public markets
[1]EDMC completed a NASDAQ public offering.
- 2006
Taken private
[1]Goldman Sachs, Providence Equity Partners, and Leeds Equity Partners completed an acquisition that took EDMC private.
- 2003
South University and American Education Centers acquired
[1]South University joined EDMC, while American Education Centers schools were later developed under the Brown Mackie College name.
- 2001
Argosy Education Group acquired
[1]The acquisition added Argosy University and broadened EDMC into business, education, and law-related programs.
- 1969
First education institution acquired
[1]EDMC acquired the Art Institute of Pittsburgh, its first major educational institution.
- 1962
Company incorporated
[1]Education Management Corporation was incorporated in Pennsylvania.
Products and positioning
A multi-brand for-profit higher-education operator offering career-oriented and degree-granting programs through campus-based and online institutions.
Art, design, media, fashion, and culinary education · 1969
The Art Institutes
A network of career-oriented schools offering programs in areas such as design, fashion, media, and culinary arts. The network became EDMC's original and historically central education business, expanding from the Art Institute of Pittsburgh to approximately 50 locations in the United States and Canada before widespread closures and transfers.
Multi-disciplinary higher education · 2001
Argosy University
A group of institutions offering undergraduate and graduate programs in fields including business, education, psychology, and related professional disciplines. Argosy joined EDMC through the 2001 acquisition of Argosy Education Group and was transferred to the Dream Center Foundation in 2017; all campuses officially closed in 2019.
Career and technical education · 2004
Brown Mackie College
A group of schools focused on health sciences, business, legal studies, information technology, design technology, diplomas, and certificates. The brand grew from EDMC's 2003 acquisition of American Education Centers schools and later contracted sharply, with most campuses announced for closure in 2016 and the remaining campuses sold in 2017.
Higher education and health sciences · 2003
South University
A for-profit university headquartered in Savannah, Georgia, with programs and locations in several southeastern and southern U.S. states. Its offerings included health sciences and other undergraduate and graduate disciplines. EDMC acquired South University in 2003 and transferred it to the Dream Center Foundation in 2017.
Legal education
Western State University College of Law
A law school that formed part of EDMC's broader portfolio of post-secondary institutions. It represented the company's expansion beyond career colleges and creative-arts education into professional legal training.
Controversies
2022
Borrower-relief settlement involving former EDMC schools
Former EDMC schools were included in a large student-loan cancellation settlement concerning alleged institutional misconduct and borrower fraud claims.
2015
Federal settlement over recruiter compensation
Authorities resolved allegations that EDMC institutions violated federal rules by compensating recruiters according to enrollment results. EDMC agreed to pay $95.5 million.
2011
Recruitment and student-outcome scrutiny
EDMC and its institutions faced public criticism over recruiting practices, student support, educational value, and the use of public funds. The documentary “Educating Sergeant Pantzke” contributed to public scrutiny of the Art Institutes.
Marketing campaigns
- 2010Coalition for Educational Success advocacy
United States
EDMC participated in the Coalition for Educational Success, an industry advocacy group that opposed aspects of the proposed federal gainful-employment rule and sought changes to its implementation.
Outcome. The Department of Education revised the rule and provided additional compliance time for affected private-sector providers.
Brand decisions
2018
Chapter 7 liquidationOtherBackground
Years of declining enrollment, litigation, accreditation difficulties, and financial losses left EDMC unable to continue as a viable operating group.
Action taken
EDMC filed for Chapter 7 bankruptcy and began liquidating its assets.
Aftermath
The corporate group ceased operating as a major education provider; its former school brands continued separately under other owners or closed.
2017
Sale of major education operationsM&ABackground
EDMC no longer had the financial capacity to maintain its former national school network.
Action taken
The company transferred Art Institutes, South University, and Argosy University to the Dream Center Foundation and sold remaining Brown Mackie campuses to Ross Medical Education Center.
Aftermath
EDMC became a substantially smaller residual entity and filed for Chapter 7 bankruptcy the following year.
2015
Exit of chief executive Edward WestOtherBackground
EDMC was experiencing severe financial deterioration, falling enrollment, and ongoing legal and regulatory pressure.
Action taken
Edward West resigned as chief executive on August 28, 2015.
Aftermath
The company continued restructuring and disposing of schools before entering bankruptcy and liquidation.
2013
Tuition freeze and contraction strategyStrategyBackground
Falling enrollment, regulatory uncertainty, and pressure from proposed gainful-employment standards led EDMC to reconsider expansion.
Action taken
The company announced a tuition freeze through at least 2015, reduced staffing, and began closing or consolidating campuses.
Aftermath
Enrollment and the institutional footprint continued to shrink, while additional Art Institutes and Brown Mackie campuses were scheduled for closure.
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