CLSA makes partial exit from Japan's BC Ings

Following the transaction, CLSA CP will continue to hold a majority stake in BC Ings, according to a statement. The buyer, Hiroshima Innovation Fund, will acquire a seat on the company's board. Financial details of the transaction have not been disclosed. The deal is expected to close by next week.

CLSA CP acquired BC Ings last year through its Sunrise II fund, which seeks leveraged buyouts in Japanese companies with enterprise valuations of JPY5-15 billion ($50-140 million). Since the purchase, the company has sought to grow its geographical reach and expand its service offering: in the past year, it has acquired pre-school operator Tokyo Gakushusha and medical training-focused high school Akasaka Gakuin.

The BC Ings deal was said to be the first-ever private equity investment in Japan's education sector, which has traditionally been viewed as highly resistant to external intervention. Several other education deals have followed, including J-Star's acquisition of the tutoring businesses of Japan's Alpha Corporation and Advantage Partners' purchase of English training center Yaruki Switch.

Hiroshima Innovation Fund is operated by Hiroshima Innovation Network, a subsidiary of Hiroshima's prefectural government. The fund supports Hiroshima-based start-ups pursuing innovative solutions that can contribute to the region's economic development.

"Hiroshima Innovation Fund has a robust network within Hiroshima, significant expertise in developing new businesses and an exceptional track record of supporting companies in the prefecture," said Megumi Kiyozuka, managing director and head of Japan at CLSA CP. "The combined capabilities of the Hiroshima Innovation Fund and Sunrise Capital ensure that we can take BC Ings to the next level in the regional cram school operator space."

CLSA CP claims to have more than $4 billion in assets under management across Asia. The firm closed its Sunrise III fund earlier this year at the hard cap of $400 million after about seven months on the market.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Trade sale
• Consumer
• Japan
• Education
• CLSA Capital Partners
• Exit