CFA Society Singapore
SINGAPORE (Apr 9): MindChamps Preschool has entered into an agreement with Palace Investments to create the MindChamps PreSchool Global Fund.
Palace Investments is an indirect wholly-owned subsidiary of private equity firm Pavilion Capital Holdings which, in turn, is a subsidiary of Temasek Holdings, Singapore's state investment firm.
Both companies will jointly form a holding company to manage the fund. MindChamps will own 70% while Palace Investments will own 30% of the holding company through convertible preference shares.
Palace Investments will contribute capital of US$1.7 million ($2.2 million) to the holding company.
Palace Investments will commit an aggregate of US$50 million to the MindChamps Preschool Global Fund, which will raise funds from other investors who seek exposure in the growing preschool education sector leveraging MindChamps' expertise and experience in the sector.
The MindChamps Preschool Global Fund will in turn invest in country preschool funds, which have been established to set up and acquire preschools under the MindChamps brand in individual countries.
One such country preschool fund is the MindChamps PreSchool China Fund, which is a JV between MindChamps and China First Capital Group, inked in February.
MindChamps expects to receive the income from profits from the operations of the holding company.
As at 3.23pm, shares in MindChamps are trading 4 cents higher at 82 cents.