KKR impact fund backs Vietnam K-12 business

Financial terms were not disclosed. KKR described the investment as the fourth deal globally under its impact fund’s education and workforce agenda, which targets the UN’s sustainable development goal (SDG) to promote accessible and quality education.

KKR has been active in impact investing since 2018, closing its debut vehicle with $1.3 billion in commitments. Last year, the private equity firm recruited Chee-Wei Wong, formerly of US-based Tailwind Capital, as its head of global impact for Asia, who suggested that as much as one-third of the fund corpus could be deployed in the region. 

Among KKR's previous impact investments in the region are Singaporean smart energy systems provider Barghest Building Performance and Australian carbon credit player GreenCollar. There have also been two commitments in India, to environmental services provider Ramky Enviro Engineers and small business lender Five-Star Business Finance.

EQuest is considered one of the leading education players in Vietnam with more than 110,000 students enrolled across its various divisions every year. Its core business is a portfolio of K-12 bilingual schools with 9,000 students located on eight campuses. Operations also include various tertiary and vocational institutions, English enrichment courses, and digital learning services.

KKR flagged Vietnam’s growing middle class as a demand driver for high-quality education services, including English. Recent private equity activity targeting this theme includes Gaw Capital backing an expansion of bilingual K-12 operator Point Avenue and English education app Elsa raising $15 million from VI Group and SIG.

“Investing in Vietnam and supporting the growth of the country’s businesses and industries is a key part of KKR’s strategy in Asia,” Ashish Shastry, KKR’s co-head of Asia private equity and head of Southeast Asia, said in a statement. “As Vietnam continues to elevate on the world’s economic stage, access to affordable, high-quality education solutions plays an important role in meeting the nation’s objectives.”

KKR’s broader exposure to Vietnam includes property developer Vinhomes and a partnership with local conglomerate Masan Group that covers multiple consumer businesses. The firm closed its fourth pan-Asian fund at $15 billion in April.

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• Topics
• Southeast Asia
• Expansion
• Consumer
• Vietnam
• KKR
• Impact investment
• Education