The founder, Hugh Oldham, a Manchester-born man, attended Exeter College, Oxford and Queens' College, Cambridge, after having been tutored in the house of Thomas Stanley, 1st Earl of Derby. Historical accounts suggest that he was not a particularly learned man, but was in Royal service, being a favoured protégé of Margaret Beaufort, Countess of Richmond and Derby, mother of Henry VII, and became recognised for his administrative abilities. He was appointed Bishop of Exeter in 1505. His great wealth came from his water-powered corn mills on the River Irk near Manchester, which were subsequently used to fund the school's endowment.