MindChamps PreSchool,Temasek co-investing in fund for franchisees

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Apr 10, 2018 06:00 am

Pre-school operator MindChamps PreSchool and a Temasek Holdings unit are co-investing in a fund for international franchisees, it was announced yesterday. The MindChamps PreSchool Global Fund will invest, directly or indirectly, in local education funds to buy and set up schools run under the MindChamps brand.

The holding company to manage the fund will be 70 per cent owned by MindChamps, with the rest held by Palace Investments - a subsidiary of Temasek's Pavilion Capital Holdings.

Palace Investments will commit US$50 million (S$65.7 million) to the fund, which will raise capital from selling limited partnership interests, including to third-party investors.

MindChamps inked a joint venture with China First Capital Group in February to set up the MindChamps PreSchool China Fund.

The company said it expects to receive profits from the operations of the new holding company, which will get dividends from the general partners of the MindChamps PreSchool Global Fund, the MindChamps PreSchool China Fund and any other funds or other similar arrangements that could be set up in future.

It is also looking at profits from the operations of the investment manager, which will receive annual management fees from the MindChamps PreSchool Global Fund. And if the returns exceed an agreed threshold, MindChamps will be entitled to a portion beyond that threshold too.