Bahrain: The white paper finds that the rapid growth of private K-12 schools and increasing focus on building an asset-light scalable business offer significant growth potential to investors. It states that the Indian Education sector has been growing at a double-digit rate in recent years, riding on long-term growth drivers like favorable demographics and recession-proof spending. It highlights how the private K-12 sub-segment, which constitutes ~50% of the growing Indian education industry by revenue, is responding to this long-term growth opportunity by focusing on operations, quality, and brand building. Private K-12 operators are also embracing technology and becoming asset-light, resulting in more capital efficiency.

Ritesh Vohra, Partner & Head of Real Estate, Investcorp India said, “The Private K-12 education sub-segment has seen growing institutional investor interest and has seen transactions in excess of US $700 million from 2016 to date, involving investments across the operating business and/or physical infrastructure segment. The Edu-Infra sector offers a meaningful opportunity to create a diversified portfolio of physical education assets and lease them to reputed and established school operators on a long-term basis, while providing school operators with requisite capital for their expansion. We believe that investments in the Edu-Infra sector can generate stable and regular yield to investors over a period of 20-25 years, along with attractive capital appreciation.’’

The white paper notes that in India, the spending on education is typically non-discretionary in nature without cutbacks even during economic downturns. The spending as a percentage of the overall consumption expenditure is generally higher in comparison to more advanced economies and comparable emerging economies.

The white paper concludes that the Edu-Infra sector offers an interesting opportunity to participate in the India growth story in a risk-mitigated manner. Investors should approach this segment keeping key risks in mind, especially around the operator profile, maturity of school operations and the terms of the underlying lease contract.

Investcorp’s India real estate team invests in diversified real estate projects located in top tier cities. So far, the business has deployed over US $250 million across 26 residential projects and has also partnered with a market-leading warehousing developer-operator.

Investcorp is also active in the mid-market private equity space in India and has invested across the consumer tech, healthcare, financial services, retail, SaaS, e-commerce, and technology sectors. Its investments over the last four years include Intergrow Brands, Bewakoof.com, Freshtohome, Zolo, InCred, Citykart, ASG, NephroPlus, Unilog, XpressBees, and Safari Industries.

Click here to read the White Paper.

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About Investcorp

Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure and insurance asset management. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.

We invest a meaningful portion of our own capital in products we offer to our clients, ensuring that our interests are aligned with our stakeholders, including the communities that we operate within, towards driving sustainable value creation. We take pride in partnering with our clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach. In January 2022, Investcorp issued its 2021 Responsible Business Report which outlines its Environmental, Social, and Governance (ESG) highlights for 2021 and specific initiatives the Firm implemented to meet its goals: https://www.investcorp.com/esg/

 Investcorp has today 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore. As of December 31, 2021, Investcorp Group had US $40.4 billion in total AUM, including assets managed by third party managers, and employed approximately 460 people from 46 nationalities globally across its offices. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.

Media Contacts:
Investcorp
Nada Abdulghani
nabdulghani@Investcorp.com