What's New In Investments, Funds? Value Partners

Editorial Staff

4 July 2018

Value Partners
A China-focused subsidiary of Hong Kong-listed has agreed to set up a private equity fund concentrating on Chinese education, seen as a potential boom area.

The subsidiary, VP Shen Zhen, has agreed with Huajiao Education Technology, part of China Education Group Holdings, to create the fund. This is also the inaugural fund of VP Shenzhen, a business located in the Qianhai Special Economic Zone and is licensed to raise funds both on the mainland of China and overseas to invest in private equity projects in China’s domestic market.

The fund will primarily invest in private higher and vocational education on the mainland of China, with a focus on control investments. It has a target to reach RMB5 billion in assets under management, with a term of five years that can be extended for two additional one-year terms.

Value Partners and China Education Group will be limited partners of the fund, while a subsidiary of each of Value Partners and China Education Group will serve as co-general partners of the fund. The co-general partners will continue to look for limited partners to invest in the fund, a statement said.

“We see strong market demand for quality education reinforced by the intention of government bodies to improve the quality of human resources in their respective region,” Xie Ketao, co-chairman of China Education Group, said.

Yu Guo, co-chairman of China Education Group, said: “Many private education operators have fallen into a development bottleneck after operating for more than a decade. They need capital and professional management for further growth.”

Value Partners had $18.2 billion of assets under management as of 31 May.