Adtalem Global Education Counters Safkhet Capital Report - Seite 2

2. Safkhet Capital Assertion: Enrollment trends show stagnation with multi-year declines.

Fact: As publicly reported, Adtalem’s enterprise total enrollment increased by 6% as of December 31, 2023, the largest increase since acquiring Walden in August 2021. ²

• Chamberlain — the nation’s largest nursing school — has grown total enrollment in each of the last four quarters, including 7% growth as of December 31, 2023.
• Walden’s total enrollment grew by 8% as of December 31, 2023, reflecting three straight quarters of double-digit new enrollment growth amplified by strong persistence rates. Walden’s persistence rates — which measure students’ progression toward graduation — have improved under Adtalem ownership. (Safkhet Capital incorrectly asserts that Walden’s total enrollment is down 35% since the Walden acquisition was announced. The truth is a 14% decline over that period, which was primarily driven by pandemic-related headwinds that have since subsided.)
• Medical/Veterinary includes our two medical schools and our veterinary school, the latter of which continues to operate near capacity. Although the medical schools have experienced modest total enrollment declines in recent quarters, we are well underway in executing a corresponding remediation plan that contemplates a return to total enrollment growth in fiscal 2025.

3. Safkhet Capital Assertion: Graduation rates and attrition rates across all Adtalem schools are trailing far behind national averages.

Fact: Adtalem provides transparency into graduation rates for our institutions. We share this data on the websites for our institutions, and we disclose the data to the Department of Education. We are proud of our outcomes and graduation rates, which compare very favorably to benchmarks across non-profit, public, private, and proprietary institutions alike.

• The graduation rate assertions made by Safkhet Capital make clear that they do not understand how to interpret or utilize graduation data.
  • Safkhet cites a graduation rate for Chamberlain that applies to ~1% of its entering class: first-time, full-time students. On the same disclosure form that Safkhet Capital cites, Chamberlain shows that for all new full-time students its graduate rate is 77%.
  • The data cited for Adtalem’s medical schools are in fact not graduation rates at all – they are a metric of how quickly graduates completed their degrees. Adtalem’s medical schools have six-year graduation rates above 70%.
  • Chamberlain University’s four-year graduation rate of 71% for all full-time undergraduate students is substantially higher than the national average of 49% across all four-year institutions.

4. Safkhet Capital Assertion: We believe the gainful employment rule will likely result in the closure of numerous Adtalem degree programs.