KKR impact fund backs Australasian edtech player
KKR’s global impact investment fund has agreed to acquire a majority stake in Australia and New Zealand-based Education Perfect, a provider of digital teaching and learning toolkits for schools, at a valuation of NZ$455 million ($320 million).
One of the sellers is Malaysian real estate developer Mulpha International, which assumed control of the business in 2017 alongside Australia-based private equity firm Five V Capital. Mulpha said in a filing that it would exit its entire 37.81% position for NZ$162.9 million.
The identities of the other sellers have not been disclosed. It was merely announced that Five V, Education Perfect's management, and company founders Craig and Shane Smith would retain equity interests in the business.
Education Perfect was established in 2007 by the Smith brothers, who initially positioned it as a vocabulary tool to help students with language learning. It has since evolved into a broad-based online platform that focuses on students aged 5-12 across all subject areas, offering tens of thousands of pre-built lessons.
The platform is used by teachers in lesson planning and assessment, and by parents as a home learning resource for their children. The company claims to leverage artificial intelligence and machine learning to deliver insights into the performance and specific needs of individual students.
With bases in Australia, New Zealand, Singapore and Dubai, Education Perfect is currently being used by more than 3,000 schools, 50,000 teachers and one million students in more than 50 countries. Since Five V’s investment, the company has more than doubled its headcount to over 200 and delivered revenue and earnings growth of 400% and 600%, respectively.
“Education Perfect aligns with our focus on lifelong learning by democratizing access to quality digital tools for teachers and students thereby driving inclusiveness in education. Its best-in-class platform combines quality content, formative assessments, student analytics and personalized learning, which support teachers day-to-day and help improve students’ learning efficacy,” said Chee-Wei Wong, head of global impact for Asia at KKR, in a statement.
The private equity firm closed its impact fund last year at $1.3 billion, with the expectation that around one-third would be deployed in Asia Pacific. Previous activity in Australia includes backing GreenCollar, an environmental services provider that helped establish the country’s carbon credit market.
Macquarie Capital, PwC, Clifford Chance and Gilbert + Tobin advised on the Education Perfect transaction.
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