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Classrooms get capital as PEs open their wallets for education sector

  • Private equity (PE) investments are increasingly shaping the education sector, particularly in K-12 segments, with a growing focus on for-profit service companies that support schools.
  • Despite regulatory constraints in India, such as the not-for-profit requirement for school affiliations, PE firms are investing in platforms that offer services like curriculum, teacher training, technology, and infrastructure to schools.
  • Investments in education have seen a significant uptick post-2010, with a notable increase in K-12 transactions in the last five years, signaling a shift towards service-led models and investor comfort in the sector.
  • While exits are limited for investors at the moment, there is growing interest in strategic sales and consolidation within the education sector, with a focus on achieving meaningful scale and leveraging technology for transformative impacts.

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