Global PE and private credit firms are accelerating their push into Asia’s fast-growing education sector, with the likes of Apollo Global Management and KKR backing large-scale school operators to capitalise on surging demand for private education across the region, according to a report by Bloomberg.
Excluding China, private equity investment into Asia-Pacific schools reached $6.4bn in 2024, up 25% year-on-year and more than double 2018 levels, according to LEK Consulting. The wave of capital has been channelled into acquisitions, new campus development, and expansion into emerging markets such as Vietnam, Cambodia, and the Philippines.
Apollo, which first invested in Singapore-based Global Schools Group in 2021 and upsized its stake in 2023, has helped the operator grow to more than 45,000 students through nine acquisitions across Asia. The firm structured its investment as “patient capital” aligned with the longer horizons of school returns, combining financing with strategic support on M&A and capital structuring.
Meanwhile, KKR invested in Malaysia’s Taylor’s Schools in 2021 and continues to scout opportunities in Vietnam and Thailand. Other firms are also doubling down: EQT has reinvested in Nord Anglia Education, while TPG-backed XCL Education secured a $400m private credit loan earlier this year to refinance debt.
Private credit has emerged as an important funding source, with lenders drawn to the sector’s recurring revenues and rising enrolments. However, higher borrowing costs and thin hard assets leave schools more exposed if growth slows. Regulatory risk also looms, with past crackdowns in China and recent tax changes in the UK underlining the sector’s vulnerability.
Despite these challenges, rising incomes, demand for international schools, and dissatisfaction with public education continue to drive momentum. ISC Research forecasts nearly 300 new international schools globally, with more than 70% planned for Asia.
