Value Partners Group’s subsidiary Value Partners Private Equity Investment (Shen Zhen) Limited (VP Shenzhen) is partnering with Huajiao Education Technology (Jiangxi) Co to establish a private equity fund that focuses on the Chinese education sector.
The fund will be the inaugural fund of VP Shenzhen, the Group’s newly established private equity subsidiary on the mainland of China. VP Shenzhen is located in the Qianhai Special Economic Zone and is licensed to raise funds both on the mainland of China and overseas to invest in private equity projects in China’s domestic market.
The fund will primarily invest in private higher and vocational education on the mainland of China, with a focus on control investments. The fund has a target AUM of RMB5 billion and a term of five years that is extendable for two additional one year terms. Value Partners and China Education Group will be limited partners of the fund, while a subsidiary of each of Value Partners and China Education Group will serve as co-general partners of the fund. The co-general partners will continue to look for limited partners to invest in the fund.
“We are excited to launch our first private equity fund on the mainland of China at a time when Chinese investors are increasingly looking to diversify their investments and the ecosystem for private investments in the market is becoming increasingly more vibrant,” says Dato’ Seri Cheah Cheng Hye, Chairman and Co-CIO of Value Partners.
Dr Au King Lun, CEO of Value Partners, adds: “This fund marks an important milestone in both Value Partners’ growth on the mainland of China and our expansion into the alternatives space as we broaden our product suite. Together with China Education Group, we aim to offer investors a unique opportunity to participate in the fast growing China education sector directly.”
Xie Ketao, Co-Chairman of China Education Group, says: “We see strong market demand for quality education reinforced by the intention of government bodies to improve the quality of human resources in their respective region. As an industry leader, the schools run by China Education Group have consistently ranked top in the country and region. Through establishing the Fund, we will further expand our market share and benefit more students with our superior reputation and capabilities in operating schools.”
Yu Guo, Co-Chairman of China Education Group, says: “Many private education operators have fallen into a development bottleneck after operating for more than a decade. They need capital and professional management for further growth. By setting up the Fund, we hope to provide a platform and win-win solutions to peers and partners for generating
