New Delhi: Private equity (PE) investment in the education sector is estimated to touch $200 million (about Rs1,000 crore) by 2011 as fund managers are focusing on this untapped segment to maximise returns.
“In the coming 1-2 years time, we will see 12 deals totaling $200 million as the appetite for investment in this sector is on the rise,” Venture Intelligence CEO Arun Natarajan said.
“Margins are high and the education sector is resilient to current economic recession. With such vast untapped market, PE funds are now shifting their focus on this sector to maximize returns,” he said.
Even as the PE players are flush with funds to invest in this sector, marketmen said there are less number of companies which can actually channelise such investments.
“Most of the business in education space is local or regional in nature. Companies which can absorb these PE funds are few in numbers,” Natarajan said.
In the quarter ended March 2009, there was only one deal in the education sector with Helion Venture Partners and Intel Corp investing $6.5 million in Global Talent Track Co.
According to a survey by Venture Intelligence, over 80% of private equity and venture capital investors intends to invest in education companies in the next 6-8 months.