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Kaizen Private Equity March 2014 1 Kaizen Private Equity. All Rights Reserved.
Kaizen Private Equity
March 2014
1 Kaizen Private Equity. All Rights Reserved.
Kaizen Private Equity. All Rights Reserved.
Source: Kaizen Education (KE) Report
2
* Does not include captive market opportunities
Education is a Large, Growing & Well Diversified Opportunity*
LMS: Learning Management System, ICT: Information and Communication Technology, ERP: Enterprise Resource Planning
Over $100 Bn Market
3 Kaizen Private Equity. All Rights Reserved.
Education Sector Overview: Numerous Industry Sub-Segments > $500 MM
Source: Kaizen Education (KE) Report
Each segment has unique nuances
4 Kaizen Private Equity. All Rights Reserved.
Vision (Being Debated)
5 Kaizen Private Equity. All Rights Reserved.
“To be the leading value add investor in the world”
Delivering superior returns through operations-
driven investments in differentiated companies
Proven Model with Results
Proven track record of sector focused investing
► Leading education sector investor in India
► Experienced early and growth stage investor
Experienced leadership
► 33 Years of investing experience; 22 years of education investing; and 38 years of education operations
Thought Leader in Education
Thematic investing with operations focus
Transparent relationships with our limited partners 6 Kaizen Private Equity. All Rights Reserved.
Delivering Alpha in Portfolio Companies
7 Kaizen Private Equity. All Rights Reserved.
31%
10%
-3%
70%
52% 55%
15% 15% 15%
FY 12 FY 13 FY 14 E
Average Revenue Growth
Listed Education Cos Kaizen Protfolio Industry
Deep domain understanding and operations driven approach has delivered superior growth
OPS Driven Value Addition: Operations – People – Strategy
8 Kaizen Private Equity. All Rights Reserved.
Examples: authorGEN, UTS, Altus, Ace
UTS, Ace,
Altus
Altus, Klay,
UTS, authorGEN
Delivering Impact
9 Kaizen Private Equity. All Rights Reserved.
Kaizen Impact
Social ► Over 2,100 jobs created
► ~60% jobs for women
► Over 3.2 MM students in the system
Environment ► Solar power project implementation
► Adoption of environmental friendly policies across all portfolio companies
Capital ► Mobilization of additional $5 MM for
education by other parties
Governance ► Adherence to international best practices
for governance
► Advocacy with government bodies
► Use of Big Five Auditors
Thought Leadership in Education
10 Kaizen Private Equity. All Rights Reserved.
Education advisory board member at National-Level federations
Speaking at leading education investment conferences
Kaizen India Education Report,
2009
Kaizen Southeast Asia Education
Report (in progress)
Kaizen Africa Education Report
(in progress)
IFC Education Investment Guide,
2010
DFID Report on Gyanshala Schools,
2011
Whitepapers
Technology in Education – World Education
Summit 2013
Education in India – The Economist India Summit
2013
Education Investment – The IFC Education
conference, Dubai 2012
Redesigning Universities – GES, Brazil 2012
Technology Application – The Learner’s Conference,
Greece, 2013
Global India Business Meeting, Belgium, 2012
Education conference at Stanford, USA, 2012
Education Investment conference, Dubai, 2013
Education in India,
INSEAD, 2012
Educational
Technologies in the Indian market (co-authored with
INSEAD team)
2013
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Team with Operations and Investing Experience
Kaizen Private Equity. All Rights Reserved.
Monica Mehta, Director Experience: 16 years
Years with Kaizen: 5 years
Industries: Education, Finance
MBA, Thunderbird, AGSIM
Jetu Lalvani, Executive Director Experience: 28 years
Years with Kaizen: 5 years Industries: Education, Manufacturing, Energy. OPM , Harvard Business School
Sandeep Aneja, Managing Director Experience: 18 years
Years with Kaizen: 5 years
Industries: Private equity, Technology, Consulting
MBA, Graduate School of Business, Stanford University
Amit Ratanpal, Director Experience: 14 years
Years with Kaizen: 4 years
Industries: Private Equity , Investment Banking, Fund Management
Chartered Accountant
Raj Shastri, Principal
Experience: 12 years
Years with Kaizen: 2.5 years
Industries: Private Equity, Equity Research
MBA, IIFT
Gaurav Jain, Associate
Experience: 5 years
Years with Kaizen: 5 years
Industries: Private Equity
MBA, NMIMS
Team with Operations and Investing Experience
12 Kaizen Private Equity. All Rights Reserved.
Name Age Years of Investing Experience
Years of Operations Experience
Experience prior to Kaizen
Sandeep Aneja 44 12 7 ► 6 years of Investing (Outlook Ventures and Wingspring in USA)
► 4 years business development and operations (ActionBase Corp, Booz Allen & Hamilton and Hagler Bailly USA)
Jetu Lalvani
51 5 28 ► 23 years of Entrepreneurship in manufacturing, instrumentation and chemicals
► 28 years of experience in leading and managing educational institutes
Amit Ratanpal 38 4 ► 12 years of Investment banking, asset management and capital market advisory (ICICI Bank, Birla Sunlife Group)
Monica Mehta 44 5 10 ► 10 years of education entrepreneurship
► 3 years of capital market (ASK Raymond James Securities, Darashaw & Co.)
Raj Shastri 37 7 ► 4.5 years of Investing ( Helix Investments and Guggenheim capital management)
► 5years of equity research (Thomas Weisel Partners , Motilal Oswal Securities, Evalueserve )
Eminent Education and Investment Advisors
Sergio Abramovich Vice President at DeVry Inc.
USA
Led entry for DeVry into Latin America
Jens Zimmerman Partner and MD at New Silk
Route
Led two of the largest education investments in Asia
Ex-Chairman for UGC and part of National Councils
Advises Indian Govt. for development of higher education
Mumbai Sheriff, Member at UGC and Advisor to IB Board
Board member of large higher education organizations in India
Member CII (Confederation of Indian Industry)
Education ventures, Social start-ups and Philanthropy
Prof. Arun Nigvekar
Dr. (Mrs.) Indu Shahani
Akhil Shahani
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Strategy for Next Fund
Education to remain core focus
Geographic expansion to South East Asia
Stage Agnostic
14 Kaizen Private Equity. All Rights Reserved.
Fund Strategy Components
Local knowledge
and presence
Researched investment
themes
Strong global
networks
OPS-driven value
addition
Planned Exits
Significant influence &
control
Solving a core pain
(must have)
Differentiated
(unique, execution, brand, IP)
Tangible Outcomes
(admission, scores,
certifications)
Characteristics of Target Companies
15 Kaizen Private Equity. All Rights Reserved.
Large established markets or new high growth markets
Open to control or significant influence
High barriers
to entry
Cross border opportunities
Kaizen Private Equity. All Rights Reserved. 16
Disclaimer
Investment Advisor Address:
Kaizen Management Advisors Private Limited
202 Suraj Prakash CHS,
86 Shankar Ghanekar Marg,
Prabhadevi, Mumbai – 400 025, India.
Office: +91 (22) 6767 5757
Fax: +91 (22) 6767 5758
This presentation is intended only for the benefit of potential investors to whom the presentation is made or delivered for the purpose of considering a possible investment in the Kaizen Private Equity.
The presentation is not and should not be deemed to constitute an offer to invest or a solicitation of an offer to invest, to or from the public in general or to or from any person other than the person to whom the same is addressed.
Any reproduction hereof in whole or in part, or the disclosure of its contents or the distribution of the presentation, without the prior written consent of Kaizen Private Equity, is prohibited.
The contents of the presentation are provisional and may be subject to change. The presentation is neither a prospectus nor an offer or invitation to apply for units of fund. The information contained herein is not exhaustive and must be read in conjunction with the information memorandum and other documents.
While reasonable care has been taken to ensure that the information included herein is correctly and fairly represented, Kaizen, and other parties involved in the preparation hereof assume no liability for the relevance, accuracy or completeness of the contents herein.
In making an investment decision, potential investors must rely on their own examination of the fund documents and the terms of the offering, including the merits and risks involved.
Before making an investment, each potential investor should make its independent assessment and inquiries and consult its own advisors as to legal, business, tax and related matters concerning an investment in fund.
The Fund and its portfolio companies are subject to several risk factors that may affect the fund performance.
Contact:
SANDEEP ANEJA [email protected] Cell: +91 99309 88355
JETU LALVANI [email protected] +91 98210 33007
