
VIDEO: Kaizen's Sandeep Aneja
India’s education sector has become a hot investment realm of late, and in light of Kaizen Private Equity’s success in raising funds for its newest vehicle, Sandeep Aneja, Founder and MD of the education-focused group, discusses strategies for investors and the potential the industry holds for private equity.
According to Aneja, opportunities surrounding India's education sector range from the traditional - such as school and materials - to various forms of technology that enables learning. And, at the rate that the industry is growing, private capital remains in short supply.
"[The sector] presents numerous opportunities across schools, colleges, vocation institutes, specialized training institutes, and then we have how technology plays into education," Aneja explains. "I think that if you look at the size of the sector, it's possibly about $80 to $86 billion in size, including public and private spend. Private spend is about $43 billion, to be growing to $64 billion over the next three years."
Aneja further says that private equity's role in the sector will be to bolster the quality of Indian education.
This remains part of Kaizen's mantra, which it has taken on the fundraising trail. Last month, HDFC acquired a minority stake in Kaizen Management Advisors Ltd., and additionally pledged an undisclosed amount of capital as an LP into Kaizen Private Equity's new vehicle. This followed news that IFC would also contribute to the fund.
Read more on the state of Asia Pacific's education sector in AVCJ.
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