Private equity players are beginning to show a fair amount of interest in the non-regulated education business in India. More than half a dozen companies in the education business have received private equity investments in the past two years, Mr Mohit Khullar, Vice-President, Equirus Capital Private Ltd, said.
Franklin Templeton India’s private equity arm recently invested Rs 50 crore in Career Point Infosystems Ltd. This company which is based in Kota (Rajasthan) has been in the news recently for the high success rate of IIT aspirants that it trains.
Other companies in the education business that have received private equity investment are Mahesh Tutorial, FIITJEE, Time, Career Launcher, Time, Hurix System, Wigan & Leigh, Tree House Play School.
“In the current uncertain economic environment, the attractive and predictable rates of return of the education industry are serving as a magnet for PE investors,” the CEO of a private equity firm said.
Private equity investments tend to give very high returns to investors. Returns from the education business are pretty high, say PE firms.
Gaja Capital had made a pre-IPO investment of $1 million in Educomp Solutions which gave them a handsome return of around 20 times when they exited.
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