What about ancillary services? Aneja says it’s an interesting segment, and promoters there are willing to give up control, but the challenge there is that rarely is it a stand-alone company, unattached to some other business in the education segment. “If it is a separate company, then it’s very small and has not grown to a point where it has become attractive yet,” Aneja said.
Envisaged to have a portfolio largely made of the core education segment, Kaizen, unlike other funds which typically exit an investment in three-five years, will have a gestation period of up to 10 years.
The plan is to create a holding company of all the companies Kaizen invests in that will see an aggregate of profits of the companies it invests in making it a viable candidate for listing on a stock exchange. Alternately, this holding company can be sold to a secondary investor. And third, if Kaizen, at any point, finds a good buyer for an institution it’s created, who shares the same goals as the fund and is willing to take it forward in that direction, it can sell.
sanat.v@livemint.com
Graphics by Ahmed Raza Khan / Mint
Tags - Find More Articles On: