As per three sources with knowledge of the situation, US private equity firm TPG is in advanced negotiations to purchase Malaysian private education assets controlled by regional buyout firm KV Asia Capital in a deal that may be worth more than US$300 million.
One of the individuals suggested that a deal might be reached as early as the first quarter. TPG, which manages $135 billion worth of assets worldwide, has been growing in South-east Asia recently, including Malaysia.
According to sources who declined to be named because the negotiations are still in progress, KV Asia hired Rothschild last year to investigate selling Asia Pacific Education Holdings. Rothschild, KV Asia, and TPG declined to comment.
South-east Asia's burgeoning middle class has made the region's educational assets appealing to investors. According to sources, private equity groups including PAG and Platinum Equity are interested in buying Advent International's share in the Singaporean tuition business The Learning Lab.
Two tertiary institutions owned by Asia Pacific Education are situated in Kuala Lumpur, the capital of Malaysia. KV Asia's website states that Asia Pacific University of Technology & Innovation and Asia Pacific Institute of Information Technology have more than 10,000 students between them and are located on two campuses.
Based on a previous press release, KV Asia and the management team of the education company acquired Asia Pacific Education in 2018 from Ekuiti Nasional, a private equity fund manager affiliated with the Malaysian government. This transaction includes primary and secondary school operator Asia Pacific Schools, which was sold a year later for an undisclosed sum, but it was based on an enterprise value of 725 million ringgit.
According to its website, KV Asia focuses on investing in mid-sized South-east Asian businesses in industries like consumer goods and healthcare. According to the company's website, its current clientele includes Singapore-based marine diesel engine servicing provider Power Diesel and Indonesian beauty and personal care brand Victoria Care Indonesia.