D E Shaw, a global private equity firm with $36 billion in assets, is understood to be planning around $200 million investment in the Indian education sector by taking up strategic positions in companies offering e-learning, distant learning, vocational training and the like. The PE major is upbeat on the sector following the ministry of education's estimate that the country needs to build close too 200,000 new K-12 (kindergarten to senior secondary) schools. According to industry sources, the infrastructure must be set up within five years to provide education for predicted growth in student numbers and also the over 100 million children who are out of school. The government has called on the private sector to help fill this demand-supply gap. "However, one of the principal supply side constraints for private schools is the access of educational infrastructure required for a new school and companies such as Educomp intends to target this gap," an industry source said. The spokesperson for D E Shaw could not be reached for comments. D E Shaw is expected to leverage one of its portfolio firms, Excelsoft, as a vehicle for acquisitions in this sector in addition to making direct PE investments.   more »