ADB, Kaizen back Philippines education business

Phinma Education operates six universities and colleges in the Philippines, offering programs at bachelor’s and graduate levels, along with basic education through affiliated high schools. The company also owns a 50% stake in a nursing school in Myanmar and launched a joint venture with Indonesia’s Tripersada Global earlier this year to operate tertiary schools in the country.

In the 2017 school year, Phinma Education grew its enrolment by 8% to reach 58,837 students across its network in the Philippines, not counting the 3,000 students gained through the acquisition of St. Jude College in Manila. The parent company does not disclose financial information for individual subsidiaries, but for the year ended December 2017, the education arm’s consolidated net income fell from PHP219 million to PHP150 million due to investment in the Myanmar expansion.

Profitability was also impacted by government reforms that extended the basic education system from 10 years to 12, limiting the pool of students available to tertiary institutions.

According to a disclosure, ADB and Kaizen subscribed to newly issued shares representing a 20.3% stake in Phinma Education and will be entitled to two seats on the company’s board. Kaizen is investing from its second fund, which launched in 2014 and reached a first close of $44 million in 2017.

The firm supports companies both in and supporting the education sector in India and Southeast Asia, with deals in the latter category including the Series C round for Indian education-focused lender Varthana last year.

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Philippines
• Education
• Kaizen
• Growth capital