EQT AB will return $5.4 billion to investors this week after completing the sale of a stake in Nord Anglia Education Ltd., marking one of the most profitable recent private equity exits in Asia, people familiar with the matter said.
The Nord Anglia investment was initially made in 2008. It sold and reinvested again in 2017 through a different fund and has since delivered nearly four times its invested capital, the people said, asking not to be named discussing private details.
A spokesperson in London declined to comment on the fund returns.
The sale comes amid concern about the sluggish exit activity of Asia-based managers compared with their peers in the US and Europe. The deal marks a big win for EQT in Asia this year after its exit of Indian technology services provider Coforge Ltd. in 2023 for about $2.2 billion, generating around a three-times return, the people said.
EQT tipped more money into Nord Anglia last year in a new fund after rolling in additional capital in 2017 alongside Canada Pension Plan Investment Board. It exited the investment due to the finite lifespan from that fund. Nord Anglia’s earnings before interest, tax, depreciation and amortization surged nearly fourfold since its 2017 investment, the people said.
“We want to run with the winners,” Jean Eric Salata, Asia chair of EQT, said in an interview. “You come across these assets very rarely in your career, and rather than just sell your best assets, you want to hold onto them as long as you can.”
A consortium including Neuberger Berman, Corporacion Financiera Alba SA and Dubai Holding Investments bought a stake in Nord Anglia in a deal valuing the international school operator at $14.5 billion including debt. Buyout firm EQT and another existing backer, Canada Pension Plan Investment Board, also reinvested.
The equity portion of the deal, which is $10 billion, was syndicated to 70 other investors, including family offices and two founders of schools previously acquired by the firm, Salata said.
