Private equity groups are accelerating investment into Asia’s education sector, with KKR and Apollo among the most active backers as deal activity in the region hit $6.4bn in 2024, according to sources cited by Bloomberg.

That figure marked a 25% rise on the previous year and more than double the volume recorded six years ago.

Apollo’s involvement has transformed Singapore-based Global Schools Group, which has expanded to 45,000 students across Asia through nine acquisitions since 2021. “They are patient capital with longer horizons,” said Arjun Temurnikar, Director of Growth and Investments at Global Schools Group, who credited Apollo’s bespoke financing for enabling faster expansion.

KKR has pursued a similar strategy through its investment in Taylor’s Schools, where demand from Asia’s growing middle class continues to drive expansion. “There is a consumption story behind education, as the growing middle class have more disposable income,” said SJ Lim, Managing Director at KKR. “It’s discretionary spending, but high in desirability.”

Other private equity firms are also fuelling growth in the sector. EQT reinvested in Nord Anglia Education after returning $5.4bn to investors earlier this year, while TPG-backed XCL Education secured a $400m private credit loan in May. Vietnamese conglomerate Vingroup is seeking about $300m in private credit to repurchase KKR’s stake in Vinschool.

Despite the strong momentum, the sector faces challenges, including rising financing costs, potential overcrowding in markets such as Vietnam and Thailand, and regulatory risks highlighted by China’s 2021 crackdown on tutoring and the UK’s new 20% VAT on private school fees.

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