When the University of Idaho recently scrapped a $550 million deal to buy for-profit University of Phoenix, it may have been a blessing in disguise for the latter's private equity owners.

• They now plan to take the school public, likely at a much higher valuation.

The big picture: This is a Trump trade, betting on an administration that's favored light-touch regulation on for-profit education with low graduation and loan repayment rates.

Catch up quick: Apollo Global Management and Vistria Group took University of Phoenix private for $1.1 billion in 2016.

• The Idaho deal was signed in 2023, following reported discussions with the University of Arkansas, but collapsed due to political opposition.

By the numbers: University of Phoenix reported 78,900 enrolled students as of August 2024, with over 80% of them pursuing undergraduate degrees. The average starting age is 37 years old.

• Its six-year graduation rate is only 37%.
• The national average graduation rate at private nonprofits is 68%. It's 63% at public institutions and 29% at private for-profits.
• The company reports $118 million of net income on $750 million in revenue for the nine months ending May 31, 2025, per its IPO filing.

Zoom in: Timing with this IPO may be everything.

• Educational institutions cannot have a federal student loan default rate higher than 40% in any given year, or 30% for three consecutive years.
• But because there was a multi-year pause in federal loan repayments, due to COVID-19, the University of Phoenix lists its current default rate at zero.
• As such, investors have no way of knowing how much loan default risk there really is (save for some historical data).
• The company and its PE backers are implicitly saying to trust them, maybe with a wink-wink that Trump officials could look the other way if troubles arise.

The bottom line: For-profit schools like University of Phoenix can be a vital stepping-stone for some working adults, while others end up with more debt than diplomas. Private equity might generate returns with either outcome.

Tether, the world's largest stablecoin issuer, has discussed investments in the gold mining supply chain — including miners, refiners, and traders — per the FT.

Why it's the BFD: This could blur the line between digital gold and the genuine article, with Tether seeking to provide a broader array of value storage.

• That said, Tether already does hold billions of dollars worth of gold bars that it uses as stablecoin collateral.
• Its investment arm also has backed Canadian gold royalties firm Elemental Altus, while it also has a gold-backed stablecoin called Tether Gold.

By the numbers: Gold futures hit an all-time high earlier this week, before pulling back slightly.

The bottom line: "Within the conservative gold mining sector, Tether's interest has been greeted with surprise — and questions about whether the unconventional newcomer will succeed." — Leslie Hook & Nikou Asgari, FT