SEAVI Advent Private Equity (“SEAVI Advent”) completed an US$10.8 million investment in HQ Global Education Inc. (the “Company” or “HQGE”) through Exchangeable Bond at the shareholders level.
HQGE provides “customized training” services to a wide array of students by operating its own private schools or cooperating with selected public vocational schools in China. By providing full educational and job placement services, the Company realizes recurring revenues, such as tuition fees, school logistics services fees, off-campus internship management fees and job placement fees.
As of August 31, 2010, there were more than 34,000 students from 25 provinces throughout China enrolled in HQGE-operated schools. In line with its “customized education” approach, HQGE has established contractual relationships with approximately 128 corporate clients and provides training and internship arrangements to students who upon graduation become employees of these corporate employers. HQGE brand has become increasingly synonymous throughout China with superior vocational training to meet employer needs and with career fulfillment for those who aspire to become technical and skilled workers. By August 31, 2010, HQGE has kept the record 100% placement rate for its graduates.
SEAVI Advent believes the prospect of the education sector of China is promising, especially for the vocational education sector. As China increasingly becomes a manufacturing hub of the world, the demand for skilled workers is very strong. Meanwhile, traditionally Chinese parents are willing to spend on children’s education due to one child policy. The employment pressures on the college graduates make more parents and students switch to vocational education.
SEAVI Advent sees strong growth potential in HQGE, which is running a unique or innovative business model in China for vocational education. The customized education method, its growing student base and consistent high placement rate make HQGE a leading player in the China vocational education sector.
About SEAVI Advent Private Equity
SEAVI Advent Private Equity, the exclusive Asian affiliate of Boston based private equity firm Advent International Corporation, is one of the first private equity and venture capital firms to operate in the Asia Pacific region. Since 1984, the firm has invested over US$500 million into many Asian companies, from growth to late stage, as well as buyout and control transactions. SEAVI Advent has been instrumental in delivering value for many of its portfolio companies, which include Yangzijiang Shipbuilding (Holdings) Ltd, Chemspec Corporation, Shengli Oil & Gas Pipe Holdings Ltd, Venture Corporation Limited and IDS Group.