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Is ACT Owned by Private Equity?

Not anymore — ACT was owned by Nexus Capital Management, which acquired it in 2024, but the firm has since exited. The effects of that ownership can linger.

FORMERLY PE OWNED

ACT

Includes ACT Inc., American College Testing

Standardized Testing · Iowa City, IA

PE Firm
Nexus Capital Management
Year Acquired
2024

PE bought the nonprofit college test, flipped it for-profit, and sold it on two years later. The for-profit part stayed.

What Happened

  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
  4. Nonprofit testing giant ETS acquired ACT from Nexus in July 2026. ACT stays a for-profit company under its new nonprofit parent — ETS's CEO said only that its legal status could change eventually

The Damage Done

  • 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?

Not anymore. ACT was formerly owned by Nexus Capital Management starting in 2024, but the firm has since exited. The effects of PE ownership often linger.

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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