Singapore: MindChamps, Temasek unit to form preschool investment fund

From Left to Right: MindChamps PreSchool chief brand officer and group general manager Michelle Peh, MindChamps PreSchool founder CEO and executive chairman David Chiem, Pavilion Capital CEO Tow Heng Tan and Pavilion Capital COO Chiam Fong Sin

Singapore-listed educational institute Mindchamps Preschool has announced that it has entered into a joint venture agreement with Temasek subsidiary Pavilion Capital Holdings to create an investment fund focused on the preschool education sector.

According to an official statement, the partnership will see both companies form a holding company to manage the fund called MindChamps PreSchool Global Fund. MindChamps will own 70 per cent of the holding company, while Pavilion Capital, through its subsidiary Palace Investment, will own the remaining 30 per cent.

Palace Investments is contributing $1.7 million in capital to the holding company with plans to commit a total of $50 million. The fund will also seek investments from other investors looking to tap the growing global preschool education market.

The fund will look to invest in country preschool funds, which have been established to set up and acquire preschools under the MindChamps brand in individual countries. An example of such fund is the MindChamps PreSchool China Fund, which was a joint venture between Mindchamps and China First Capital Group inked in February 2018.

“Preschool education is a growing sector due to rising demand from the middle-class population globally,” said Pavilion Capital chief executive Tow Heng Tan. “We are pleased with the opportunity to work closely with them to internationalise through expanding their network of overseas franchisees.”

In the event of fundraising from limited partners, or third-party investors, MindChamps said it will also incorporate an investment manager with an initial share capital of $300,000. The holding company will then contribute another million in consideration for the issuance of a nominal number of shares in the manager.

In Singapore, MindChamps Preschools holds a 38.5 share market share of the premium range preschool market in Singapore. It debuted on the Singapore mainboard late last year and operates premium preschools and enrichment centres in Australia, UAE and the Philippines.

The preschool operator’s joint-venture fund with China First Capital Group, which will raise an initial $200 million, is part of the firm’s ambitions to become the world’s top brand of early childhood education.

The firm has previously announced that it would also be expanding to Myanmar and Vietnam.

Pavilion Capital Holdings is a subsidiary of Singapore’s state investor Temasek Holdings. According to reports last week, Pavilion is set to inject funds of up to $38 million into Ezion Holdings Ltd, a ship operator in the oil and gas industry.

Also Read:

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.