Investor group buying Dana College in Neb., hope to double enrollment at small, private school

Investors buy private Dana College in Neb.

OMAHA, Neb. — Dana College will soon join the handful of private colleges that have been sold in recent years and converted from nonprofit organizations to for-profit corporations.

College officials announced Wednesday that a group of investors and an unnamed private equity firm agreed to buy the school in Blair. Terms of the deal, which is expected to close this summer, were not disclosed.

Since 2004, 10 other private, nonprofit colleges have been sold and converted to for-profit enterprises, according to the National Association of Independent Colleges and Universities. But that remains just a fraction of the nation’s 1,600 private, nonprofit colleges, said group spokesman Tony Pals.

“There’s been speculation that we may see more because of the economic downturn,” Pals said. “It’s possible we may see a few others — but no more than a handful — in the coming years.”

Dana has experienced financial problems and ran significant deficits for several years, and this week’s sale announcement came after officials spent the past year evaluating their options.

“We are pleased to have found a partner that believes in Dana and its place in the community,” college President Janet Philipp said. “Dana will now have new financial resources needed to thrive and highly experienced higher education administrators to complement the current staff.”

Dana officials and the investors buying the college said they don’t plan big staff or program changes. The school was founded by Danes and has ties to the Evangelical Lutheran Church.

The investors plan to double Dana’s 500-student enrollment through aggressive marketing and expanded study-abroad programs.

Raj Kaji, who will become Dana’s new president, said he is excited about the possibilities. He previously served as an administrator at the online Walden University. Dan’s current administrators, including Philipp, will move into new roles under a new executive team.

“It is our dream that in five years, one-third of the student body will exercise its opportunity to study abroad,” Kaji said.

Dana’s fundraising office will close when it loses its nonprofit status because it will no longer be able to accept charitable contributions. About five jobs will be eliminated there.

Dana spokeswoman Nikki Kinsey says a foundation will be created to maintain the college’s Danish heritage and Lutheran church ties. The foundation will also oversee scholarship funds.

On the Net:

Dana College: www.dana.edu