KKR's roll call for EuroSchool chain tempts Carlyle, Partners, EQT, CPPIB
₹1,400 crore, and infused more funds to acquire assets. The private equity firm has hired JP Morgan and Avendus to find buyers for Lighthouse. The 100% stake sale in Lighthouse, that was formerly called EuroKids International Group, assumes significance given that schooling and pre-schooling are perceived as regulated sectors, and any foreign investor will have to get comfort before going ahead with the investment, the three people said.
“Currently, these funds are carrying out due diligence and bids are likely to be in soon," the second person added. Alpha Asia Holdings II Pte Ltd, an investment arm of KKR, holds 94.53% in Lighthouse, while CEO Prajodh Rajan holds the balance 5.47%, a Crisil report in February 2024 said. Queries emailed to spokespersons of KKR and CPPIB remained unanswered, while spokespersons for EQT, Carlyle and Partners Group declined to comment.
“It is a very lucrative deal and the headroom for growth is very high. This is of high interest for PE investors," the third person said. Under the KKR fold, Lighthouse has entered new cities, operating in Bengaluru, Mumbai, Hyderabad, Pune and NCR.
It offers schooling under several education boards including CBSE, ICSE, IGCSE and IB. "Running schools and colleges in India is an extremely profitable business - for any industry, just about anywhere in the world. If you've built a good brand and have over five years of consistent track record, it's a great play for a predictable outcome for late-stage institutional money," said Kashyap Chanchani, managing partner, The Rainmaker Group, a homegrown investment bank.
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