Mid-market private equity investor AnaCap Financial Partners has made its first investment in India following the acquisition of three K12 school and student housing assets from the Jain Group of Institutions, an operator of K12 and higher education institutions, which provides education to around 65,000 students.
In doing so, AnaCap has formed a joint venture with Indian education investor Cerestra Advisors. The firms said they have been working together for more than 18 months.
AnaCap and Cerestra will primarily focus on K12 schools and student housing, which they say are some of the fastest-growing segments in the education sector.
AnaCap stated that it sees scope to develop this investment strategy into a dedicated education infrastructure investment trust, a first-of-its-kind vehicle to be listed in India, with a yield profile attractive to institutional investors globally.
AnaCap has been present in India for several years having built out AnaCap Global Services since 2017, with 40 data and system analysts based in Noida supporting the broader AnaCap platform globally, and now a dedicated team of three investment professionals based in Mumbai.
Rakesh Balasundaram, investment director at AnaCap in Mumbai, said: “We are very excited to enter the Indian market by working with Cerestra as a highly-respected operating and origination partner, as we seek to make further educational infrastructure asset acquisitions ahead of a possible vehicle listing.
“Despite the global economic threat of Covid-19, AnaCap remained active during the summer months, with this deal showing our commitment to exploring new and emerging markets for our investor base. We look forward to continuing to build upon AnaCap’s successful credit and real estate investment track record by implementing our strategy in India.”
Vishal Goel, co-founder and partner at Cerestra, added: “This partnership brings to fruition our search for a global partner to institutionalise the edu-infra space in India which we have been building over the past five years. With a team based in India, AnaCap has demonstrated its long-term commitment to the Indian market and in the process ensured that we have the capital, speed and understanding to address the market effectively and comprehensively in a time bound manner.”
Jasmeet Chhabra, co-founder and managing partner at Cerestra, said: “This partnership will herald a new era in providing the necessary investor attention and acceptance to core assets across education and life sciences verticals, the two areas where Cerestra has been focusing to address the capital needs of the local industry.”
Date published: 20 October 2020