Tembusu sells 36% interest in Ednovation for over S$50m

Singapore

TEMBUSU Partners, a Singapore-based private equity firm, said on Thursday that it has divested its 36-per-cent stake in homegrown education group, Ednovation, to private equity firm CDH Investments, in a deal valued at over S$50 million.

Andy Lim, chairman and founder of Tembusu, told The Business Times that while he could not disclose the exact figure, the deal was valued "way above" S$50 million.

The disposal - via Tembusu Growth Fund II (TGF II) and Tembusu Growth GIP Fund (TGIP) - is said to yield an internal rate of return (IRR) of over 30 per cent for the three years that Tembusu held Ednovation.

Mr Lim said the IRR is above industry expectations of between 20 and 25 per cent.

He added that both TGF II and TGIP had invested a total of S$26.4 million in Ednovation in 2013, via debt and an equity stake representing 36.4 per cent of Ednovation.

TGF II is a S$110-million Pan-Asian private equity growth capital fund with an investment focus on growth sectors such as education, healthcare and tech. It is a parallel fund to TGIP.

Emily Goh, principal of Tembusu, said: "This successful exit is consistent with our track record of nurturing education businesses in Singapore and the region while creating value for investors."

Ednovation, founded in 1991, operates more than 60 pre-schools in Singapore, South-east Asia and China under the brands Cambridge, ChildFirst and Shaws.

Ednovation is also said to be a pioneer in pre-school education technology with an early childhood e-curriculum, EdnoLand, which emphasises bilingualism (English and Mandarin), multiple intelligences and creativity. Ednoland is reportedly used by hundreds of third-party pre-schools throughout the region.

Richard Yen, founder of Ednovation, said: "Ednovation has benefited substantially from Tembusu's support as a strategic partner.

"We are ready for the next phase of growth with CDH as we set our sights on becoming one of the leading pre-school operators in the region, especially in China where the recent easing of the one-child policy will bode well for the pre-school market over the long haul."