MAKATI, Philippines - KKR, a global investment firm, has entered into definitive agreements to invest in PHINMA Education Holdings, Inc., part of the PHINMA Corporation, a Filipino conglomerate. The investment, made through funds managed by KKR, is the firm's first Global Impact investment in the Philippines, with participation from existing shareholder Kaizenvest. PHINMA Corporation will continue as the majority shareholder of its education arm.
PHINMA Education, established in 2004, focuses on providing affordable tertiary education to underserved youth in Southeast Asia. The company operates a network of colleges and universities serving approximately 150,000 students, with nine institutions in the Philippines and one in Indonesia.
The investment from KKR's Global Impact Fund II aims to support PHINMA Education's mission to offer quality education and vocational training, contributing to the United Nations Sustainable Development Goal 4 (Quality Education). KKR intends to assist in scaling the company to become a leading education platform in Southeast Asia.
George Aitken, KKR's Managing Director and Head of Global Impact for Asia Pacific, expressed the firm's alignment with PHINMA Education's mission and its commitment to leveraging KKR's experience in global education investments to support the company's growth.
Ramon R. del Rosario, Jr., Chairman and CEO of PHINMA Corporation, emphasized the company's ongoing mission to improve the lives of young Filipinos and expressed confidence that KKR's partnership will strengthen their ability to serve the youth.
Dr. Chito B. Salazar, President and CEO of PHINMA Education, highlighted the potential for reaching more students and making education more accessible with KKR's investment.
The transaction is anticipated to close in the third quarter of 2024, pending approval from the Philippine Competition Commission.
KKR has a history of investing in educational and workforce development companies, including EQuest Education in Vietnam, Education Perfect in Australia and New Zealand, Graduation Alliance and Lightcast in the United States, and Master Distancia in Europe.
InvestingPro Insights
As KKR embarks on its first Global Impact investment in the Philippines with PHINMA Education, the company's financial health and market performance are critical for investors monitoring the impact of this strategic move. KKR's commitment to expanding educational opportunities aligns with its robust financial metrics and market performance.
With a substantial market capitalization of $94.51 billion, KKR demonstrates significant market presence and stability. The company's Price/Earnings (P/E) ratio stands at 22.95, reflecting investor expectations of future earnings growth, while the adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly higher at 23.39. This valuation metric is essential for investors to consider when evaluating KKR's stock price relative to its earnings.
Investors also take note of the company's revenue growth, which has been impressive at 323.59% over the last twelve months as of Q1 2024. This growth indicates KKR's ability to scale its operations and increase its market share, which could be further enhanced by the strategic investment in PHINMA Education.
Two InvestingPro Tips that stand out for KKR include the company's history of raising its dividend for 4 consecutive years and maintaining dividend payments for 15 consecutive years, signaling a commitment to providing shareholder value. Additionally, the firm's standing as a prominent player in the Capital Markets industry suggests that its investment in PHINMA Education could be a strategic move to diversify and strengthen its portfolio.
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