Global private equity firms eye Singapore-based XCL Education: sources

[SINGAPORE] Private equity firms including Warburg Pincus and KKR are among potential bidders for South-east Asian school operator XCL Education, according to people familiar with the matter.

Other alternative asset managers weighing bids for TPG-owned XCL include Blackstone and EQT, the people said, asking not to be identified as they are discussing confidential information.

A transaction could value Singapore-based XCL at as much as US$1.5 billion, people familiar with the situation had said previously.

While the sale process is moving forward, considerations are ongoing and other bidders could emerge, the people said.

They added that a decision on the buyer is unlikely to be made until next year.

Representatives for the private equity firms declined to comment on the matter.

XCL has K-12 school campuses across South-east Asia, including XCL World Academy in Singapore, the American School of Bangkok’s Sukhumvit campus, and Vietnam Australia International School, according to information on its website.

Its other shareholders include Temasek Holdings.

Private money is pouring into schools in Asia as investors seek to profit from growing demand for quality education.

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TPG weighs sale of US$1.5 billion Singapore-based XCL Education: sources

Excluding China, firms closed US$6.4 billion of education deals across the Asia-Pacific last year.

This figure was an increase of 25 per cent from 2023 and more than double the volume of six years earlier, according to data from LEK Consulting.

Earlier this year, a consortium including asset manager Neuberger Berman bought a stake in Nord Anglia in a deal valuing the international school operator at US$14.5 billion including debt.

EQT, one of Nord Anglia’s major shareholders, invested in the company again through a newer fund. BLOOMBERG