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Is ACT Owned by Private Equity?

Yes — ACT is owned by Nexus Capital Management, which acquired it in 2024, though major consumer impacts haven't surfaced yet.

PE OWNED · ON WATCH

ACT

Includes ACT Inc., American College Testing

Standardized Testing · Iowa City, IA

PE Firm
Nexus Capital Management
Year Acquired
2024

A 60-year-old nonprofit college test just got bought by PE. The students paying $68 a sitting are now revenue.

Too Soon to Tell

  1. Nexus Capital Management acquired ACT in 2024, converting it from a 60-year-old nonprofit into a for-profit public benefit corporation
  2. Converting to for-profit drops the cost-change oversight nonprofit status imposed, a point the College Board's CEO raised publicly
  3. Nexus plans to sell access to ACT's credentialing and curriculum services beyond just admissions testing

Early Signs

  • More than a million high schoolers take the ACT every year, and it's now owned by investors who need to generate returns.
  • Test fees run $68 without the optional writing section and about $93 with it. Critics warn the for-profit flip strips the cost oversight that nonprofit status required.
  • Education professionals raised alarms about reduced accountability and the risk of profit extraction from what was a public good.

Sources

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What people ask

Is ACT owned by private equity?

Yes, but we're still watching. ACT was acquired by Nexus Capital Management in 2024, but visible consumer impacts haven't emerged yet.

What happened to ACT after the acquisition?

More than a million high schoolers take the ACT every year, and it's now owned by investors who need to generate returns. Test fees run $68 without the optional writing section and about $93 with it. Critics warn the for-profit flip strips the cost oversight that nonprofit status required.

Who owns ACT?

ACT is owned by Nexus Capital Management, which acquired it in 2024.

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