AnaCap Financial Partners has sealed its first Indian investment through the acquisition of three K-12 school and student housing assets from the Jain Group of Institutions.
The firm also revealed it had entered a joint venture with Indian education asset investment specialist Cerestra Advisors.
AnaCap said India’s growth rate means it is expected to become the world’s most populous country by the end of 2024, with the higher education sector expected to see an additional 500 million people in the education-seeking population.
India’s higher education system is already the third largest in the world, and the government’s vision is to increase the enrolment rate from the current 27% to 50% by 2030.
AnaCap will work with Cerestra to focus primarily on K-12 schools and student housing, which it says are some of the fastest growing segments in the education sector.
The firm said it sees scope to develop this investment strategy into a dedicated education infrastructure investment trust, a first of its kind to be listed in India, with a yield profile attractive for institutional investors globally.
AnaCap investment director Rakesh Balasundaram said, “We are very excited to enter the Indian market by working with Cerestra as a highly-respected operating and origination partner, as we seek to make further educational infrastructure asset acquisitions ahead of a possible vehicle listing.
“Despite the global economic threat of Covid-19, AnaCap remained active during the summer months, with this deal showing our commitment to exploring new and emerging markets for our investor base.
“We look forward to continuing to build upon AnaCap’s successful credit and real estate investment track record by implementing our strategy in India.”
Vishal Goel, co-founder and partner at Cerestra, added, “This partnership brings to fruition our search for a global partner to institutionalise the Edu-Infra space in India which we have been building over the past five years.
“With a team based in India, AnaCap has demonstrated its long-term commitment to the Indian market and in the process ensured that we have the capital, speed and understanding to address the market effectively and comprehensively in a time bound manner.”
AnaCap has raised €5.1bn in funds since it was launched in 2005, and specialises in private equity and credit deals in the financial services sector.
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