Project detail - KAIZEN PRIVATE EQUITY II PTE LTD

KAIZEN PRIVATE EQUITY II PTE LTD

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Who is our client

FMO has committed USD 15 mln to Kaizen Private Equity Fund II, a Fund focused on the education sector of emerging South and South East Asia, targeting a size of USD 125 mln. The Fund will invest in education, defined as core education (e.g. K-12 schooling), parallel education (e.g. preschool, test preparation), and enabling (e.g. technologies, books, Edtech, transportation and student housing), in India, the Philippines, Vietnam, Thailand and the rest of S/SE Asia. Kaizen is the only specialized education fund manager in developing Asia.

Funding objective

The Fund will invest in equity and equity linked securities (e.g. convertible debt instruments) in growth and early-growth companies. Investments are sourced through Kaizen’s network (regionally and globally) or through the education activities that are attended/organized by Kaizen.

Why we fund this project

FMO has invested in Kaizen Private Equity Fund II, as according to the World Bank, quality education is one of the strongest drivers of economic growth in developing countries. Education represents a major solution to reduce inequality among society members, and empower women’s’ positions, since it provides increased chances of getting a better job, increased individual earnings and financial independence. Additionally, better education means improved health, since people are better prepared to prevent diseases and use health services efficiently. Finally, education increases people’s cognition, which eventually leads to higher awareness regarding human rights and freedoms.

Environmental and social rationale

The E&S category is B for Kaizen Private Equity FUnd II, in line with the risk profile of the prospective investments in the education sector. Kaizen therefore mainly focuses on health and safety issues, non-discrimination in personnel and hiring practices and good working conditions. The Fund’s ESG policy commits to the IFC Performance standards and country-specific laws.

Region
Asia
Country
India
Sector
Infrastructure, Manufacturing and Services
Signing date
12/14/2017
Total FMO financing
USD 15.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B