In a bid to tap into the fast paced expansion in education businesses, Investec Asset Management, a subsidiary of Investec, has bought a stake in Richfield Holdings, a firm that runs private colleges in South Africa.
Rising income among Africa’s vast population have created a pool of customers willing to pay for better schooling for their children. This development is driving a fast paced expansion in education businesses. Investec Asset Management did not reveal the size of the stake or cost of the deal.
Jay Ramnundlall, Richfield Founder and Chief Executive Officer said the deal with Investec Asset Management will enable the firm to realise its expansion plans. Richfield, which was founded 28 years ago, has more than 40 campuses in South Africa.
Investec Asset Management has $143 billion in assets and its parents company plans to spin-off and float the asset management unit on the London Stock Exchange with a secondary listing in Johannesburg.
With schools across South Africa and Namibia, Curro Holdings is South Africa’s largest private education group. It is followed by Advtech, which has been expanding in Africa where rising income has created a group of customers that can afford private education.