Vietnamese behemoth Vingroup is reportedly raising a $300 million loan to buy back KKR’s interest in its education subsidiary Vinschool. KKR currently holds a 38% stake in Vinschool, per a Bloomberg article on Thursday (June 5).
The report added that UBS is the deal advisor helping Vingroup approach private credit providers.
KKR’s investment in Vinschool was never announced. In 2020, there were rumours in the local market that Vingroup was looking to sell its K-12 education unit, which the Vietnamese company denied at the time.
In the same year, KKR led a consortium to acquire a 6% stake in Vinhomes—Vingroup’s real estate developer—for 15.1 trillion dong ($650 million).
In the education space in Vietnam, KKR is known for its investment in EQuest. KKR’s first investment in EQuest in June 2021 was said to be in the region of $100 million. In May 2023, it pumped another $120 million into the company in a debt and equity round.
DealStreetAsia reported in January this year that shareholders of EQuest were mulling a stake sale, having roped in Southeast Asian financial advisor Rippledot Capital to run the process that would potentially create an exit for KKR.
Several other exits are also underway in the education sector. EQT was said to initiate a sale process for English language training centre ILA, and Koala House was exploring a sale to KKR-backed Taylor’s Education Group in Malaysia, DealStreetAsia earlier reported.
Meanwhile, Navis Capital Partners has rolled up its education assets into a continuation fund.
The reported KKR-Vinschool deal comes at a time when local firms are getting more familiar with private credit. Mekong Capital-backed pharmacy retail chain Pharmacity raised an equity and debt funding from Avenue Capital Group last year. Hong Kong-based ADM Capital has backed Vietnamese companies such as Modular Housing and ABA Cooltrans. Most recently, BlueOrchard joined the debt mix of Techcoop’s Series A round.
The reported transaction also highlights an increasing trend of promoter buybacks in Southeast Asia. Navis recently exited Vietnamese seafood company Godaco in a management buyout. The Malaysia-based private equity firm last year divested tertiary education group SEG International in the same structure. Meanwhile, the management of Indonesia’s largest herbal medicine company Sido Muncul, facilitated an exit for Affinity Equity Partners.
