OCBC’s PE unit exits China-based Tsingda eEdu

The buyers are a group of undisclosed Chinese investors.

Founded in 2003, Tsingda eEdu provides online-to-offline (O2O) supplementary educational courses and curricula for K-12 students in China. In the offline space, the company operates more than 3,000 self-owned and franchised teaching centers.

The education group filed for an US IPO in 2011 but withdrew its application in December 2014. AVCJ Research records show that Zurich-based investment fund Capvent committed $5 million in the company in 2012. Two years later, China-based Zenith Investments, MCU and RRJ Capital also invested.

OCBC said in a release that MCU backed Tsingda eEdu as part of its strategy of targeting high-growth small and medium enterprises (SMEs) in Singapore, Malaysia, Indonesia and China.

"We were able to secure stellar returns on this investment by finding value in China's burgeoning education sector," said Daniel Kwan, head of MCU. "This deal underscores once again our investment expertise and on-the-ground experience in our core markets, which have given us a nuanced understanding of the local business landscapes."

OCBC has been making private equity investments for 13 years and through the MCU team. The unit has invested in more than 80 companies, making about 60 realizations for an IRR of more than 15%. Last August, the bank closed its debut SME-focused fund - Lion-OCBC Capital Asia Fund - at S$550 million ($392 million). It is the first time OCBC has tapped third-party investors for a PE vehicle.

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• Topics
• Greater China
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• Mezzanine
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• Trade sale
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