October 2012
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State’s first private equity deal gives 25 cr boost to education

Gujarat’s first private equity deal in education sector, Kaizen Private Equity LLC has picked up an undisclosed stake by investing Rs 25 crore ($4.5 million) in Ahmedabad-based Altus Learning Private Limited, which runs CalorX brand of schools. Altus, which is promoted by educationist Manjula Pooja Shroff, currently manages 16 schools, mostly in Ahmedabad.
“We chose Altus because it is instrumental in supporting schools with 6000 students and offers quality education,” said Sandeep Aneja, founder and managing director of Kaizen Management Advisors. Kaizen is one of India’s first education-focused private equity (PE) funds, which closed its maiden fund at nearly Rs 400 crore in June this year.
Altus plans to increase this network to more than 30 schools growing its student base from current 7,500 to 17,000 in the process. The funds would be used to expand the schools under its network across western and northern India. Altus aims to focus more on the competent K-12 segment while continuing to add playschools. It will also add existing schools under its network besides working on new projects. While the company is involved in providing services to help set up new schools and manage them, it is not involved in owning school infrastructure. “Education is an under-capitalised sector, which needs both finance as well as human capital. Education is at the core of consumption of every family,” Aneja said.
Besides Altus, Kaizen had previously invested in distance education provider Universal Training Solutions (UTS) and a corporate day care services firm, Your Kids ‘R’ Our Kids (India) Pvt Ltd.
On October 10, 2012 Kaizen disclosed a Rs 24 crore investment in Bangalore-based Ace Creative Learning Private Limited. “The reason that PE firms are attracted to education is that the sector is less susceptible to market forces and the return of investment is better. Besides, it makes a social impact and also benefits the society,” said Aneja.
Source: Times of India

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