The assets and employees of IFES were transferred to the Universidad del Istmo in September 1997, when the university officially received its charter from Guatemala's Consejo de la Enseñanza Privada Superior (Council of Private Higher Education).
The Universidad del Istmo traces its roots to 1964 when its precursor institution, the Instituto Femenino de Estudios Superiores, opened its doors to women seeking to pursue academic study, diplomas and degrees.
The initial programs offered were: On 29 September 1997, in response to an official request from IFES and other supporters, Guatemala’s Council of Private Higher Education authorized the creation and operation of the Universidad del Istmo.
This collaborative orientation is partly responsible for the name of the university, which aims to be an "isthmus" or land bridge that unites scientific research with professional practice, enduring societal values with innovation and creative spirit, domestic challenges with international ones, academia with business, and the liberal arts and humanities with modern technology.
Plans call for the construction of a network of academic groups arranged along a linear landscape, joined by shaded paths, and connected to the surrounding community.