Singapore: Tembusu Partners exits Ednovation to China’s CDH Investments

Visual sourced from VIVO Healthcare website

Singapore-based private equity firm Tembusu Partners has sold its 36 per cent stake in homegrown education group, Ednovation Pte Ltd to Chinese alternative asset management firm CDH Investments, in a deal valued at more than $35.07 million (S$50 million).

For the private equity firm, the exit was made via Tembusu’s Growth Fund II and Tembusu Growth GIP Fund, and the company, in a statement on Thursday added that deal represented an internal rate of return of more than 30 per cent for the three years that Tembusu has held Ednovation.

TGF II is a $85 million Pan-Asian private equity growth capital fund with an investment focus on growth sectors such as education, healthcare and technology. Meanwhile, TGIP is a parallel fund to Tembusu Growth Fund II.

Singapore-based Ednovation operates more than 60 pre-schools in Asia under the brands Cambridge, ChildFirst and Shaws and is also engaged in pre-school education technology with early childhood e-curriculum, EdnoLand, also used by third party pre-schools throughout the region.

Since the acquisition, Ednovation acquired two pre-school chains, Cambridge Pre-schools and Shaws Preschools and grew its regional footprint from the initial 12 schools in 2013 to 62 pre-schools with 24 in Southeast Asia, 16 in Singapore and 22 in China.

“We are ready for the next phase of growth with CDH as we set our sights on becoming one of the leading pre-school operators in the region, especially in China where the recent easing of the one-child policy will bode well for the pre-school market over the long haul,” said Richard Yen, Founder of Ednovation.

With artificial intelligence and robots displacing away many jobs, Asia needs to evolve from being a manufacturing capital to becoming the creative capital of the world. Ednovation’s vision is to develop creative minds to help power Asia’s future, he added.

Also Read:

There is no better startup environment, ecosystem in Asia than Singapore: Brijesh Pande, Tembusu

Digital consumer story in India set for significant correction in 2017: Brijesh Pande, Tembusu ICT Fund I

Singapore: Communication software developer Sixscape secures $1.4m from Tembusu ICT Fund I

China: CDH Investments raises $800m for new mid-market fund