City & Guilds privatisation controversy

What happened: Trustees of City & Guilds London Institute are accused of delaying an independent inquiry into the £166m sale of its training and accreditation business in October 2021. Meanwhile, the new owner, private equity firm Bridgepoint, faces potential legal and industrial action from Unite union over alleged dishonesty in plans to cut about 400 UK jobs. Course providers like Charlie Butler's company have seen fee hikes and bonuses for senior staff before key executives left.

Market impact: The controversy surrounding City & Guilds could disrupt the vocational training sector, potentially impacting other education providers and private equity firms. The threat of legal action and job cuts may deter investors from similar deals, affecting M&A activity and valuation repricing in the sector.

What to watch next: The launch of the independent inquiry into the sale, slated for Q2 2022, will provide clarity on the trustees' actions. The outcome of the Unite union's legal challenge and potential industrial action, expected in Q3 2022, will determine the impact on Bridgepoint's plans and the wider sector.