The Education Fund

CONFIDENTIAL
PE Investments in the Education Sector
Jonas Gomes
7º Congresso de Fundos de Investimentos
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CONFIDENTIAL
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Table of Contents
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The Education Fund
Abril Educação Case
Portfolio Divestment
Perspectives of the Education Sector
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The Education Fund
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About BR Investimentos
One Billion Reais under Management in Private Equity in two growth PE funds
Private Equity Fund
Education Fund
R$ 360 Million Subscribed
Vintage Feb. 2009
Fully Invested
Private Equity Fund
Growth Fund I
R$ 600 Million Subscribed
Vintage Jan. 2010
70% Invested
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About BR Investimentos
Funds Investment Portfolio
Infrastructure
Food Retail
FIP Brasil
Parking Services
Coinvestment
K-12 Education
Post-Secondary
Education Fund
Corporate Training
Executive Education
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Education Track Record
Since 2009, BR Investimentos has invested over R$ 400 million in the Education Sector...
Investment
Platforms
K12
Post-Secondary
Generalist
Thematic
EMPLOYABILITY
REPUTATION
Investments
Portfolio
Companies
Non-Regulated
Education
Content & Educ.
Technologies
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Abril Educação Case
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Abril Educação Case
The Investment Thesis
The Group
The Challenge
The arrival of digital media in the education sector has
attracted media groups to the education sector.
The largest printed media group in Brazil.
Transform an academic book publisher into an education
company.
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Abril Educação Case
A strategic and accelerated rollup consolidation , with an IPO...
Spin-off
Investment
jul
aug
2010
IPO
apr
jul
oct
2011
feb
apr
jun
2012
Language
Teaching
Vocational
Education
K12 Learning
Systems
Distance
Learning
Test Prep
Acquisitions
jul
feb
2013
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Abril Educação Case
… enabled a successfull transition from publishing to educational services...
EBITDA 2012 = R$ 366 *
EBITDA 2009 = R$ 97.7
11%
34%
100%
274% EBITDA
Growth
25%
30%
Publishing
* Pro-Forma results to include Wise-Up acquisition
Publishing
Learning System
Language Prep
Schools
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Abril Educação Case
...creating the largest Basic Education player in Brazil
Public
Market
Publishing
K-12 Learning
systems
K-12 Schools
Test Prep
Vocational
2012 Pro Forma Results (mm): Revenues: R$ 1,110 / EBITDA: R$ 366
Languages
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Abril Educação Case
...with a Market value of around US$ 2 billion.
300
261
260
Performance
220
180
140
94
IPO 100
Bovespa Index
60
Jul-11
Sep-11 Nov-11
Jan-12 Mar-12 May-12
Jul-12
Sep-12 Nov-12
Jan-13 Mar-13
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Portfolio Divestment
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Portfolio Divestment
50% Divestment in a Follow on
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Portfolio Divestment
Gross proceeds of R$ 272 million to BRI investors at 2.7x in less than three years
representing a net IRR of 45.4%
Pre Offering Share Structure
Institutional Demand Concentration
68%
Free Float
32,5%
55%
BR
Investimentos
16,7%
37%
Civita Family
50,8%
Top 5
BR
Investimentos
9,16%
By Region
¹ includes green shoe option
By Investor Type
Europe
17%
Hedge
52%
Civita Family
46,29%
Top 15
Allocation Breakdown
Post Offering Share Structure ¹
Free Float
44,56%
Top 10
Long
48%
US
22%
Brazil
61%
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Portfolio Divestment
The Return of the Consolidated Investments in Education is greater than 150%....
Private Equity
Private Equity
676
200%
80,0
350,0
107%
226,3
Venture Capital
321%
168,8
19,0
Custo
Valor de Mercado
Custo
Valor de Mercado
Custo
Valor de Mercado
+
...which represents R$ 400 million transformed into more than R$ 1 billion in three years
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Perspectives for the Sector
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Perspectives for the Sector
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The Universalization of
Quality
“How to universalize the quality?”
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Perspectives for the Sector
2
The Role of Capital
Markets in the Education
Sector
“Is for profit education a solution?”
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Perspectives for the Sector
Transmidia Education
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The disruption of Digital
Media in Education
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Content production
Distribution platforms
Teaching and learning methods
Sector business models
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Perspectives for the Sector
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Towards a globalized
education
“Knowledge is Flat”
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Education Track Record
The invested companies provide educational services to more than 1 million people
K-12
Post Secondary
Corporate Training
+ 600 thousand students
+ 60 thousand students
+ 350 thousand students
The Plan
“Invest R$ 1 billion in the education sector, in order to
create the largest Brazilian education company”.
CONFIDENTIAL
BR Investimentos Ltda.
Av Borges de Medeiros, 633
22430-041– Rio de Janeiro, RJ, Brazil
Tel.: +55 21 3503.3600
Email: [email protected]
www.brinvestimentos.com.br
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