Phinma gets P4.5B in fresh capital from global investors

MANILA, Philippines — Phinma Education, one of the biggest private education groups in the Philippines and the education arm of Phinma Corp., has secured P4.5 billion in fresh capital for its planned expansion of education offerings in the region.

According to a stock exchange disclosure on Wednesday, Phinma Education Holdings Inc. signed an investment agreement to issue new shares worth P4.5 billion to Phoenix Investments II Pte. Ltd., an investment vehicle managed by global firm KKR Global Impact, and Rise Edu Pte. Ltd., which is managed by Kaizenvest, an education-focused private equity fund with investments scattered across South and Southeast Asia.

AB Capital served as the financial adviser of Phinma education for the transaction. 

KKR has also entered into an agreement to acquire all Phinma Education shares directly or indirectly owned by Asian Development Bank (ADB), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), and Kaizen Private Equity II Pte. Ltd. (Kaizenvest II).

Following the completion of these transactions, this means KKR will own, directly or indirectly, a 30.67% stake in Phinma Education. Meanwhile, Kaizenvest's stake will be at 3.73%.

Parent firm Phinma Corp., which currently owns 75.01% of its education arm, will remain the majority shareholder.

The deal is expected to close by the third quarter, subject to the approval of Phinma Corp. and conditions. 

Under the investment agreement, KKR gets three seats in the subsidiary's board of directors

KKR will be investing from its Global Impact Fund II, a fund that targets companies whose core business contributes towards one or more of the United Nations Sustainable Development Goals (SDGs).

Led by Phinma Corp. CEO Ramon del Rosario Jr., Phinma Education runs a network of colleges and universities in the Philippines with around 150,000 students. It currently has nine schools in the Philippines and manages one in Indonesia.

“When PHINMA first entered the education business two decades ago, we wanted to help improve the lives of young Filipinos in need and in turn, their families. Our commitment to this mission remains steadfast to this day," Del Rosario said in a