K-12 schools offer growth potential

Bahrain: The white paper reveals that the rapid growth of K-12 private schools and the increasing focus on creating a scalable asset-light business offer significant growth potential for investors. It says India’s education sector has seen double-digit growth in recent years, building on long-term growth drivers like favorable demographics and recession-proof spending. It highlights how the private K-12 sub-segment, which accounts for approximately 50% of India’s growing education industry by revenue, is responding to this long-term growth opportunity. focusing on operations, quality and brand building. Private K-12 operators are also embracing technology and becoming inactive, resulting in greater capital efficiency.

Ritesh Vohra, Partner and Head of Real Estate, Investcorp India, said, “The K-12 private education sub-segment has seen growing interest from institutional investors and has seen deals of more than US$700 million from 2016 to date, involving investments across the entire business sector and/or physical infrastructure The Edu-Infra sector offers a significant opportunity to build a diverse portfolio of assets physical education facilities and lease them on a long-term basis to reputable and established school operators, while providing school operators with the capital they need to expand.We believe that investments in the Edu-Infra sector can generate a stable and steady return for investors over a period of 20 to 25 years, as well as attractive capital appreciation.”

The white paper notes that education spending in India is generally non-discretionary in nature, with no cuts even during economic downturns. Spending as a percentage of overall consumer spending is generally higher compared to more advanced economies and comparable emerging economies.

The white paper concludes that the Edu-Infra sector offers an exciting opportunity to participate in India’s growth story while mitigating risks. Investors should approach this segment bearing in mind the key risks, including with respect to the operator profile, the maturity of the school’s operations and the terms of the underlying lease agreement.

Investcorp’s real estate team in India invests in diversified real estate projects located in leading cities. So far, the company has deployed over US$250 million across 26 residential projects and has also partnered with a market-leading warehouse developer-operator.

Investcorp is also active in the middle-market private equity sector in India and has invested in the consumer technology, healthcare, financial services, retail, SaaS, e-commerce and IT sectors. technology. His investments over the past four years include Intergrow Brands, Bewakoof.com, Freshtohome, Zolo, InCred, Citykart, ASG, NephroPlus, Unilog, XpressBees and Safari Industries.

Click here read the white paper.


About Investcorp

Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP holdings, infrastructure and asset management. ‘assurance. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.

We invest a significant portion of our own capital in the products we offer to our customers, ensuring that our interests are aligned with those of our stakeholders, including the communities in which we operate, to foster the creation of lasting value. We are proud to partner with our clients to provide solutions tailored to their needs, using a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative approach and entrepreneurial. In January 2022, Investcorp released its 2021 Responsible Business Report which outlines its environmental, social and governance (ESG) highlights for 2021 and the specific initiatives the company has implemented to achieve its goals: https://www.investcorp.com/esg/

Investcorp now has 13 offices in the United States, Europe, the GCC and Asia, including India, China and Singapore. As of December 31, 2021, the Investcorp group had total assets under management of US$40.4 billion, including assets managed by third-party managers, and employed approximately 460 people of 46 nationalities globally in its offices. For more information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and instagram.

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Nada Abdulghani
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