The education sector is sometimes touted as the next big opportunity for investors. You only have to look at the valuations of the few plays on education in the market to realize it’s a story that has been sold to investors. And not without reason. A recession-proof sector, an inefficient public education system, a growing young population and aspiring middle class besides the “education-hungry” Indian, are reckoned to be reasons for this rush of funds into education. A CLSA Asia-Pacific report last year said India’s education and training sector is a US$40 billion market, with a potential to grow at a compounded 16% a year for the next five years. Profit margins at the operational level range from 15 to 35 % across the sector. […]

Fund raising by global private equity funds has dipped to an over five-year low of $38 billion in the third quarter of 2009, as fund managers are refraining from making any new commitments before next year. Fund raising in Q3 2009 represents a 55 per cent slump from Q2 of 2009, when the PE funds had raised an aggregate $84 billion globally, according to a report by global research firm Preqin. Private equity fund raising plummets to lowest levels since 2003, with the third quarter figures equivalent to just 45 per cent of the $84 billion raised in Q2 2009, Preqin said. […]

The Competition Commission of India (CCI) will shortly notify Section 5 and 6 of the Competition Act to regulate mergers and acquisition, according to CCI Chairman Dhanendra Kumar. CCI had already notified Section 3 (Prohibition of Anti-competitive Agreements) and Section 4 (Prevention of Abuse of Dominant Position). In his keynote address at a seminar on “Competition Laws — Development of Trade and Industry,” organised by Hyderabad-based Babul Reddy Foundation, he said competition would accelerate growth and ensure quality products and services were offered at reasonable prices to consumers. “India was transforming into a free economy. Competition is an essence of the market economy,” he said. […]