Risepoint: The Rise and Fall of Another OPM?

In recent years, the online education sector has seen dramatic growth, largely fueled by partnerships between universities and Online Program Managers (OPMs) like Risepoint (formerly known as Academic Partnerships). These companies promised to help institutions expand their online offerings, providing technical support, marketing services, and student recruitment in exchange for a significant share of tuition revenue. However, as OPMs grew in power, their business models came under intense scrutiny for potentially exploitative and predatory practices.

The Rise of Risepoint

Risepoint, initially founded as Academic Partnerships (AP) in 2007 by Randy Best, became a leading player in the OPM space, helping universities launch and manage online degree programs. In return, Risepoint took a significant cut of the tuition fees, sometimes as much as 50%. The company’s model relied heavily on tuition-share agreements, which have long been controversial due to the significant financial burden they place on both institutions and students.

These arrangements became more contentious as the cost of higher education continued to rise, particularly in the case of online degrees. Critics argue that the large sums taken by OPMs like Risepoint divert essential funds from universities, leading to higher tuition fees and contributing to the growing student debt crisis. This concern has been amplified by the rise in aggressive recruitment tactics employed by OPMs, which often target low-income students with promises of easy access to higher education without fully disclosing the financial implications.

Randy Best's Ties to Republicans: A Controversial Network

Randy Best, the founder of Academic Partnerships, had close connections to prominent Republicans, including Jeb Bush, the former governor of Florida. Best has been a well-known advocate for education reform and has built a network of relationships within both political parties. His close ties to Bush, a key figure in education policy, have been part of a broader pattern of OPM companies gaining influence across the political spectrum.

This bipartisan network of political connections allowed Best and Academic Partnerships to navigate the political landscape and expand their reach in the higher education sector. However, critics argue that such ties may have contributed to a lack of accountability for OPM companies like AP/Risepoint, who have operated with little oversight while profiting off of public institutions.

Risepoint's Ownership: The Vistria Group and Its Ties to the Obama Administration

A key piece of Risepoint’s corporate structure lies in its ownership by Vistria Group, a Chicago-based venture capital firm with close ties to political and corporate elites, including former President Barack Obama. In 2019, Vistria Group acquired Academic Partnerships for its Vistria II fund, adding the company to a broader portfolio that includes a number of for-profit education assets such as Edmentum, Vanta Education, FullBloom Education, MSI Information Services, Apollo Education Group, and Unitek Learning.

Vistria’s co-founder, Marty Nesbitt, is a close friend of Barack Obama, and the firm has been associated with several high-profile political figures. Nesbitt himself is known to have worked closely with Obama on various initiatives, and his connections have helped Vistria expand its reach in the education sector. The firm’s investment in Risepoint underscores a broader trend of venture capital firms seeking profit from higher education, leading to concerns about the growing corporate influence on public institutions and their students.

The Controversy at the University of Texas-Arlington

The close connections between OPMs and university leaders have not been without scandal. In 2020, Vistasp Karbhari, the president of the University of Texas-Arlington, resigned following a controversy involving his relationship with Academic Partnerships. Karbhari had accepted two international trips paid for by the company, sparking an investigation into potential conflicts of interest. The university had paid Academic Partnerships more than $178 million over a five-year period for managing its online degree programs.

This situation drew public attention to the potential for improper financial relationships between university administrators and private OPM companies. The high cost of these partnerships, particularly the large amounts paid to OPMs like Academic Partnerships, raised questions about whether universities were prioritizing student outcomes or simply enriching private firms at the expense of public funds.

Minnesota Leads the Way: A State Takes Action

The controversy surrounding tuition-share deals reached a boiling point in 2024 when Minnesota became the first state to pass legislation restricting these agreements. St. Cloud State University in Minnesota had signed a tuition-share deal with Risepoint that resulted in the company receiving a substantial percentage of tuition revenue. Critics of the arrangement argued that the deal drained valuable resources from public universities, while enriching private companies at the expense of students.

In response to mounting pressure, Minnesota lawmakers passed a bill banning new tuition-share agreements with OPMs, signaling a shift toward greater oversight of these partnerships. The move was hailed by critics as a much-needed reform to protect public institutions and students from exploitative business models.

Senate Concerns and Growing Backlash

In addition to state-level efforts, U.S. Senators Elizabeth Warren, Sherrod Brown, and Tina Smith raised concerns over OPM practices in a 2024 letter to eight major OPM companies, including Risepoint. The senators questioned whether the recruitment tactics and revenue-sharing models contributed to rising student debt and whether these companies were sufficiently transparent about how tuition funds were being used.

“We continue to have concerns about the impact of OPM partnerships on rising student debt loads,” the senators wrote. They specifically targeted the high percentage of tuition revenue taken by OPMs, arguing that this model created financial disincentives for universities to lower costs or improve educational outcomes for students.

In response, Risepoint and other OPM companies indicated a willingness to engage with policymakers, but the growing scrutiny of their business practices indicates that their influence in the higher education space may be waning.

Academic Partnerships Acquires Wiley’s Online Business

In an interesting turn of events, AP/Risepoint expanded its reach in November 2023 by acquiring Wiley’s online business for $150 million. This acquisition is part of a broader trend of consolidation in the OPM sector, as companies seek to maintain their competitive edge in an increasingly saturated market.

The deal underscores Risepoint’s ambition to broaden its portfolio of online education services, even as its business practices face growing criticism. While Risepoint sees this acquisition as a growth opportunity, others view it as a sign of the consolidation of power within the OPM sector—a market that has been repeatedly criticized for its lack of transparency and for its role in inflating costs for both universities and students.

New Department of Education Guidelines

As the federal government joined the conversation, the U.S. Department of Education took steps to regulate the OPM industry more closely. In January 2025, the department issued new guidance that could lead to penalties for colleges that allow their OPM partners to mislead students. The guidance prohibits OPM employees from using college email addresses or signatures that imply they are employed by the institution, as well as from misrepresenting the quality of online programs.

The Department of Education’s actions came in response to long-standing concerns about misleading marketing practices. Student advocacy groups have called for stronger oversight of OPMs, which often promise students high-quality education without fully disclosing the financial ramifications. “OPMs commonly mislead students about the quality of their online programs, and that is illegal,” said Carolyn Fast, director of higher education policy at The Century Foundation.

The Decline of OPM Growth

However, the OPM industry is showing signs of slowing down. A report by Validated Insights in October 2024 revealed that OPM growth has dramatically slowed, with 147 partnerships ending in 2023—the highest number of contract terminations since 2020. Additionally, new contracts for 2024 have dropped by more than 50%. This slowdown signals that many universities are reevaluating their reliance on OPMs like Risepoint, opting instead to bring online programs in-house or partner with alternative providers.

The reduction in OPM partnerships reflects broader trends in higher education, where increasing scrutiny over business models, rising student debt, and calls for greater accountability are reshaping the landscape. Universities are under increasing pressure to justify the cost and efficacy of online degree programs, and many are finding that the financial burden of partnering with OPMs may no longer be sustainable.

The Future of Risepoint and the OPM Industry

The scrutiny surrounding Risepoint and other OPMs is part of a larger conversation about the future of online education and the need for greater transparency in how these programs are marketed and funded. As states like Minnesota lead the charge to limit tuition-share agreements, and as federal agencies take a more active role in regulating the industry, the days of unchecked growth for OPMs may be numbered.

Risepoint, once a leader in the OPM space, now faces a rapidly changing regulatory environment that threatens its business model. While the company continues to acquire new assets like Wiley’s online business, the industry as a whole may be entering a period of retrenchment, with universities becoming more cautious about entering into partnerships with companies that take a large cut of tuition revenue.

As the OPM industry faces increasing scrutiny and regulatory challenges, the future of companies like Risepoint remains uncertain. What is clear, however, is that the once-booming market for online program management is shifting, and the predatory practices that have long been associated with OPMs are being closely examined. Whether Risepoint can adapt to these changes or whether the OPM model as a whole will undergo significant reform remains to be seen.