Adtalem Global Education Counters Safkhet Capital Report

Core Viewpoint - Adtalem Global Education, Inc. strongly refutes claims made by Safkhet Capital, asserting that the report contains numerous factual errors and misrepresentations regarding the company's performance and operations [1][2][3]. Group 1: Company Performance and Claims - Adtalem is the largest healthcare educator in the U.S., producing more nursing and Doctor of Veterinary Medicine graduates than any other institution [2]. - The company achieved a 98% first-time residency attainment for its medical school graduates last year [2]. - Adtalem's total enrollment increased by 6% as of December 31, 2023, marking the largest increase since acquiring Walden in August 2021 [4]. - Chamberlain University, the nation's largest nursing school, has seen total enrollment growth for four consecutive quarters, including a 7% increase as of December 31, 2023 [4]. - Walden's total enrollment grew by 8% as of December 31, 2023, with strong persistence rates [4]. Group 2: Financial Assertions and Clarifications - The assertion that Adtalem should impair its $1.48 billion acquisition of Walden is incorrect; the most recent impairment test in May 2023 did not identify any impairment [4]. - Adtalem's graduation rates are competitive, with Chamberlain's four-year graduation rate at 71%, significantly higher than the national average of 49% [7]. - The company fully complies with the 90/10 rule, and recent changes in the calculation have had a negligible effect on RUSM's 90/10 rate [10]. - Adtalem's institutions are fully accredited and eligible for Title IV funding, despite claims regarding expired Program Participation Agreements [13]. Group 3: Response to Safkhet Capital's Assertions - Safkhet Capital's claims regarding the borrower defense program and its potential impact on Adtalem are unfounded, as there is no evidence of material risk [12]. - The comparison between Adtalem and Corinthian Colleges is baseless, as the circumstances surrounding their operations and challenges are fundamentally different [14]. - Adtalem's share repurchase claims are misleading; the company maintains a balanced approach to capital allocation, including investments in technology and student support [15]. - The updated executive compensation policy aligns management incentives with long-term shareholder value, contrary to claims made by Safkhet Capital [16].