The value of the deal, however, was not disclosed by both parties.
TTCE, a member of multi-industry investor Thanh Thanh Cong Group, currently owns and operates 17 schools and English training centers in the southern hub. The private school chain has identified and secured land for an additional four schools, which will open by academic year 2020-2021.
Under the investment deal, Navis and its partners will continue to grow the platform of TTCE by opening new schools in underserved areas and expanding services in both new and existing schools.
According to David Ireland, senior partner at Navis Capital, Vietnam is experiencing strong growth across all sectors of its economy and is rapidly building its infrastructure to sustain and expand that growth. Vietnam has the highest GDP growth in Southeast Asia with a large and young population and high cultural propensity to spend on education.
The combination of Vietnam’s high population growth, rapidly emerging middle class and expanding economy is giving rise to the demand for better quality education. Top public schools that offer high quality education offer only a limited number of seats.
Premium international schools are often too expensive and limit the number of local students. Affordable private schools, from kindergarten to university level, for all Vietnamese have thus been in high demand by the local growing middle class.
“Further developing its educational base and diversifying educational opportunities to reach more of its citizens is a stated goal of the government,” said Ireland.
“TTCE is a unique asset that has been developed through the hard work of its founders and its outstanding young and energetic management team. We are very excited to be a part of this story and look forward to further developing the platform, expanding the curriculum and creating even more opportunities for our students in the coming years.”
According to TTCE’s consolidated financial statements for the year ended June 30, 2018, its post-tax profit was reported at VND27.69 billion ($1.2 million), an up of 150 per cent on-year.
The investment deal between Navis and TTCE was advised by KPMG and Hogan Lovells.
Founded in 1998, Navis manages approximately $5 billion in public and private equity capital and focuses on investments primarily across Asia. Navis contributes both capital and management expertise to a limited number of well-positioned companies with the objective of directing strategic, operational and financial improvements.
In 2018, Navis made an investment in denim supplier Saitex Holdings, whose manufacturing base located just outside of Ho Chi Minh City.