J-Star acquires Japan tutoring business

The business includes 16 private tutoring centers in Sapporo, along with a nationwide home tutoring service. J-Star will create a new corporate structure to manage the business, which will form the basis of a future platform focused on tutoring services.

In a statement, the firm said it was attracted to the industry because of its potential for growth as Japan’s declining birth rate puts pressure on the country’s traditional education system. J-Star believes tutoring centers and home tutoring services will appeal to Japanese families and students seeking more flexible education options.

Alpha opened its first tutoring center in 2005. According to J-Star, the company generated revenue of about $15 million in the most recent financial year.

J-Star is investing from its third Japan-focused buyout fund, which closed last month at JPY32.5 billion ($291 million). The firm targets control and co-control investments in companies with valuations of JPY3-10 billion, typically writing checks of JPY1-3 billion

It has made bolt-on transactions aimed at industry consolidation a feature of its strategy. Examples include the acquisition last month of veterinary services company Fuji Field by portfolio company JVCC and of aged care provider Live Cross through Kairos Tokyo last year.

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• Topics
• North Asia
• Consumer
• Buyouts
• Japan
• J-Star
• Education
• buyout