Tembusu exits Singapore-based Ednovation to CDH

Tembusu, which claims to have generated an IRR in excess of 30% from the investment, committed S$20 million in the company in June 2013, with a view to support expansion in China and Singapore. At the time, Ednovation had developed an early childhood education curriculum used by pre-schools in Singapore, Malaysia and China, and it had entered the China market directly, building up a network of 11 owned and operated pre-schools in Chongqing.

The company now has more than 60 schools under Cambridge Pre-School, Childfirst Pre-School and Shaws Preschool, as well as curriculum provider Ednoland. Cambridge and Shaws were both bolt-on acquistions. There are eight Cambridge, five Shaws and three Childfirst campuses in Singapore; 22 Childfirst campuses in China; and two Cambridge campuses in Indonesia, 21 in the Philippines, and one in Cambodia.

"Ednovation has benefited substantially from Tembusu's support as a strategic partner. We are ready for the next phase of growth with CDH as we set our sights on becoming one of the leading pre-school operators in the region, especially in China" said Richard Yen, founder of Ednovation, in a statement.

The Ednovation commitment was made through Tembusu Growth Fund II, a S$110 million ($85 million) pan-Asian fund, and its parallel entity Tembusu Growth GIP Fund. They launched in December 2010 and closed in December 2013; 12 months later the capital had been deployed across 12 deals. The firm is currently investing its third pan-Asian growth fund, which has a target size of S$150 million. In 2015, it established Tembusu ICT Fund I to focus on early-stage software deals in South and Southeast Asia.

CDH closed its fifth US dollar-denominated fund at $2.55 billion in early 2014. While the vehicle is primarily China-focused, there is scope for a limited amount of investment in Southeast Asia, for deals that have a China relevance. The GP, which has offices in Singapore, Jakarta and Ho Chi Minh City, sealed its debut deal in the region in 2013. In 2015, the firm acquired Aver Asia Corporation, a Southeast Asia equipment leasing business.

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• Topics
• Southeast Asia
• Greater China
• Consumer
• Expansion
• Trade sale
• Singapore
• China
• Tembusu Partners
• CDH Investments Management
• Exit
• Growth capital
• Education