TPG’s Rise Fund leads US$300 million Malaysia education deal

TPG’s Rise Fund made its second education investment in Malaysia, leading to the purchase of a controlling stake in a private university that valued the institution at US$300 million, people familiar with the matter said.

The Rise Fund signed an agreement for the stake in the Asia Pacific University of Technology and Innovation (APU) with co-investors including Malaysian funds Kumpulan Wang Persaraan (Diperbadankan) and Employee Provident Fund, according to a statement on Sunday (Feb 19). The shares were purchased from KV Asia, a mid-market private equity fund focusing on South-east Asia, it said.

The statement didn’t provide an investment amount but two people familiar with the deal provided the valuation, declining to be identified because the information was private. Founded in 1993, APU is a private university with a focus on technology and innovation, according to the statement.

A media spokesperson at TPG declined to comment on the investment size.

The fund acquired the International Medical University in Malaysia in June 2022. The TPG global impact investing platform has been building its tertiary studies portfolio, betting on increased demand for quality education and strong academic performers in high-growth tech-enablement and healthcare sectors.

Other related investments include InStride and the Center for Education and Access in the US. TPG Capital Asia also earlier invested in Sri KDU, Real Schools and GEMS in Malaysia as part of XCL Education, a leading education platform across South-east Asia, according to the statement.

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Kumpulan Wang Persaraan manages contributions from the federal government and relevant agencies made into the Retirement Fund. BLOOMBERG