Capvent, a private-equity firm with a specialist focus on consumer businesses in Asia, has exited its investment in Tsingda, an education services company in China, to another domestic private equity firm resulting in distributions of approximately three times the invested capital.
Capvent Asia invested in 2011 when the company revenues were USD41 million which grew by end 2014 to over USD156 million, and expected 2015 revenues at USD197million. Investors generated 2.9x and 32 per cent IRR.
Tsingda, established in 2003, is a provider of affordable supplementary educational services, for students aged up to 18 years, through online and offline channels in China. Through the online platform, students can browse over hundreds of classes on a variety of subjects, either in private or at one of the learning centres. Students also get counselling services and can purchase educational material through the Company’s offline learning centres. In November 2010, the Company also began offering live classes in its Beijing self- owned learning centres.
Tsingda is a good example of Capvent’s investment philosophy and approach. The education market in China is large, especially for test preparation for entrance exams, which has grown at more than 20 per cent p.a. during the past five years. Capvent invested in Tsingda’s unique business model offering online learning combined with offline tutoring and counselling, which gives it a competitive edge. We believed that Tsingda, with its strong growth characteristics, would provide an attractive investment opportunity for its investors.
