Private equity fund in education

1. SGR Achiever‘s Fund
Private Equity Fund in Education

2. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
Contents
August 18, 2022
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3. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
August 18, 2022
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Reserved.
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4. About SGR Advisors
 An advisory firm backed by Raisoni Group
 Raisoni group is a leading educational house operating
one of the largest chain of engineering colleges and b-
schools in Maharashtra
 Board members
 Mr. Sunil Raisoni and Mr. Siddharth Raisoni
 Will induct more professionals as the fund moves ahead
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5. Key People 1/2
 Mr. Sunil Raisoni
 Mr. Sunil Raisoni is a Bachelor of
Commerce and also holds a Honorary
Doctorate in Law conferred by the
International University of Vienna
 After successfully setting up businesses
across various sectors, Mr. Raisoni
entered the field of education in 1998 to
start the Raisoni Group of Institutions
 Today, Mr. Raisoni continues to be the
inspiration behind the strong growth and
expansion of the Group
 Mr. Siddharth Raisoni
 Masters From University of southern
California
 Worked with MNC’s like VMWARE, EBAY
in the field of product marketing,
management and brand building
 Professional Certification on STRATEGIC
INNOVATION AND RISK MANAGEMENT
from STANFORD UNIVERSITY .
 Mr. V Gopalakrishnan
 35+ years of experience in services
industry of which 25 years spent in
financial services.
 Past experiences include director/senior
management positions
 Has set up several offices across the
country with different culture.
 Has covered all major Indian cities and
had number of offices reporting to him.
 Experience ranges from, resource
mobilization to develop business in new
areas
 Dr. Mohan U Deshpande
 B.E. Nagpur University, M.Tech, IIT Delhi,
Phd, Nagpur University
 Involved in enhancing quality processes
through focused interaction with the
industry and R & D institutions
 Previously was the Director of VNIT,
Nagpur and IIT Mumbai
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6. Key People 2/2
 Mr. Hitesh Sankalecha
 Completed his Chartered Accountancy,
and ran a proprietary firm for some years
 Working with Raisoni Group for over a
decade and is responsible for all taxation,
legal compliances of the group
companies as well as financials of the
companies
 Mr. O S Bihade
 Post Graduate in Civil Engineering, was
previously the Joint Secretary in Higher
and Technical Ministry, Government of
Maharashtra
 Responsible for the Group’s expansion
plans into new courses , campuses, etc
 Dr. P. R. Bajaj
 Heads the flagship college of the Group,
GHRCE, Nagpur, that has also been
granted autonomy by the UGC
 Holds a M.E and PhD in Electronics
Engineering as well as a MBA degree
 Member of various prestigious
organizations such as MIR Lab Global
Consortium (India Coordinator),
International Technical Committee, IEEE
Exe-com Member from Nagpur Region;
Institute of Leadership & Management
(ILM), UK, and Intelligent Transportation
Society, USA
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7.  The Institutions offer courses across diversified streams at
the School, Graduate and Post Graduate level.
 The Academic programs are carefully designed as per the
affiliated university requirements as well as to enhance the
student experience and learning.
 36 Institutions, affiliated to various state universities.
 ~17,400 students and 800 classrooms.
 ~1,000 faculty members, with over 800 support staff
members.
Raisoni Group is strongly positioned as a center of
excellence operating 36 higher education institutions
Raisoni Group
Courses offered
K-12
•Class 1-12 through CBSE
& Maharashtra State
Board
Undergraduate Studies
•BE, BBA, B.Tech, BCA,
B.Sc, B.Com
Post Graduate Studies
•M.Tech, MBA, MCA,
MCM
Professional Courses
•Bachelors & Doctorate in
Education, LLB, Aviation,
Academy for
Administrative services
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8. Financials of Raisoni Group
 Annual net revenues of INR 842MM for FY2010e at the trust level,
representing a growth of ~ 39% over the previous year
 Revenues expected to grow at a CAGR of 30% over 2010-2014 to
reach INR 2,385MM (assuming no increase in campuses)
 Consolidated EBITDA for FY2010 at INR 401MM (44% margin);
Expected to increase to INR 1,141MM in FY2014 (47% margin)
 Trust revenues have more than doubled in the past 3 years to reach
INR 842MM in FY2010
 Consolidated EBITDA margin estimated at 43.7% in FY2010 (INR
401MM)
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9. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
August 18, 2022
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10. Indian Education Sector is poised for increased
private sector involvement
 Largest capitalized space, supply and demand
 $80+ billion industry (not including captive services); 9% of India’s GDP
 Network of more than 1 million schools and 20,000 higher education institutions
 Globally the largest population of over 0.5 billion within 0- 24 years age group
 Highest inefficiencies
 Historically, government spend averaged 3.7% of GDP – lower than world averages
 Unaided institutions unable to raise capital because of the current regulatory restrictions
 One of the lowest gross enrolment ratios of 12.4% for tertiary education
 Highly fragmented, yet diverse and growing
 More than 25 industry sub-segments
 CAGR 15% (Source: CLSA, SSKI)
 Exceeds GDP growth by 7+ percentage points
 Thrust on Public Private Participation by the Government
 Privately owned institutions account for over 30% of school and 50% of college enrolments
 US$ 40 billion is estimated to build additional capacity in K-12 and higher education
 Coaching and pre school are emerging market segments
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11. Willingness to pay for good education, has enabled
growth for various segments of education sector
Pre School
• A$500 million segment
catering 119 mn people but
only 1 out of 100 enrolled
growing 35% CAGR over
the four years
• Low regulations, low entry
barriers and under
penetration leading to rapid
growth. Organized players
adopting the franchisee
route because of low
upfront investment
by franchisee.
K-12
• $20 billion segment catering
to 343 million children of
which only 219 million are
enrolled
• Clear preference for private
schools due to inefficiencies
in schools comprise 7% of
the schools
• Additional capacity for
school for 142 million
children needed
immediately
• High demand and low
operational expenses allow
schools to operate at 25-
60% EBIDTA levels
Higher Education
• A $10 billion segment
catering to 105 million
people of which only 11.7
million enrolled
• Capacity constraint due to
low investments provides
opportunity for private
sector, while 3.7% GDP is
spent on education only
0.7% is allocated to HE
• Additional capacity for 7.7
million students, 27,000
new institutions required
• High demand for skilled
human capital and rising
corporate pay scales make
Engineering, Management
and Medical education the
most preferred option for
students
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12. Willingness to pay for good education, has enabled
growth for various segments of education sector
Tutoring
• $7 billion segment,
growing at 15% CAGR
over the 4 years
• Growth of the segment
is largely due to the
lack of quality in core
education and a
competitive admissions
process
• Emergence of the
market demonstrates
the propensity to spend
on education as
tutoring is almost 5
times more expensive
than school fees
Vocational Training
• $1.5 billion segment
growing at 22% CAGR
over 4 years.
• Supply constraint in
Higher Education
leading to a rapid
market.
• Emerging streams
include financial
services, hospitality,
and retail.
• Increased Government
allocation towards
vocational training and
PPPs (Public Private
Partnership) will
provide stimulus to the
market.
Multimedia
• A $200 million segment
expected to grow at
65% CAGR over the 4
years
• Growth led by
Government spending
through PPP and Sarva
Sikshiya Abhiyan
• Underpenetrated
market providing
tremendous growth
opportunity
August 18, 2022
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13. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
August 18, 2022
SGR Achiever's Fund. All Rights
Reserved.
13

14. Raisoni‘s operational capabilities with it‘s vision to
diversify could be leveraged by an early stage PE
fund
 The Raisoni Group has a glorious history
of 4 decades in the diversified fields like
Education, Manufacturing, Distribution,
Marketing, Construction and Healthcare
 The thrust into education commenced in
1998 by acquiring a single engineering
college in Nagpur, and since then, has
grown into one of the leading educational
groups in Maharashtra.
 Run by the Ankush Shikshan Sanstha and
spread across a total built up area of
42,000 Sq. M
 Youngest institute in the country to get
accredited in 2002
 Received the highest World Bank Aid
under TEQIP program by the Government
of India
 Received autonomous status in 2009-10.
The fund can benefit from the
diverse set of resources,
proven methodology and
administration
1998
•Started operations by acquiring a running
engineering college
1999
•Expansion into Information Technology with the
establishment of Institute of Technology
2002-04
•Expands offering to Law, MBA and other courses
• Tie up with International Business School in
Vienna for its MBA institute
•Set up a new college in Raipur
2005-07
•Started Engineering college Pune
•Set up a service company to corporatize its
education arm
•Starts the Hospitality & Aviation courses
2008-09
•Continues to expand its footprint across
Maharashtra set up campuses in Jalgaon,
Amravati and Ahmednagar
2010
•Currently operates 14 campuses across 6 cities
•Started new engineering & MBA college in Nagpur
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15. Raisoni Group’s Track Record
 The group has been in the field of education for over a decade and
has become a household name and trusted brand in Maharashtra
 Dominant presence in Maharashtra with 36 educational institutes
and over 22,800 students under its umbrella.
 The group has already corporatized its structure: reduced regulatory
risk for the company.
 Opportunity to significantly increase the capacity leveraging existing
infrastructure and with minimum Capex requirement
 Rapidly expand operations outside Maharashtra: LOIs received from
4 state governments. One of its kind direct play opportunity in
education with presence across all segments and streams
 Has recently ventured into other high growth areas such as
vocational training (soft skill training) and playschools
August 18, 2022
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16. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
August 18, 2022
SGR Achiever's Fund. All Rights
Reserved.
16

17. Fund philisophy
„Source Right“ deals &
„Catalyze Operations“ to
generate Alpha
Spirit of the fund is highly
entrepreneurial.
This is critical for the
objective of investing in
early stage companies.
Principle 1 - Invest in the „right industry“ = Education
•Characterised by,
•Price inelastic market
•Strong demand demographics
•Scalable business models
•Ethical and driven entrepreneurs
Principle 2 – Invest in „right people“
•First or second generation entrepreneurs
•Committed to growth
•High integrity and ethics
•Strong leadership and people management skills
Principle 3 – Invest at a „right price“
•„rightsized“ price for entry valuation by
•Understanding the key drivers of business
•Three (best/realistic/worst) case financial scenarios to highlight risks and critical
success factors
•Innovative structuring of deal to mitigate risks and boost success factors
•Include margin of safety to cover risk of equity stake and un-listed nature of the
potential investee
Principle 4 – Invest with a plan for ‚right exit“
•Invest in the long term
•Given, the nature of the industry, holding period needs to be high to capitalize on the
growth opportunity.
•Review and assess exitability
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18. Fund Strategy
Create value in all three
stages of the life of the
investment
Focus
Education sector in India
Stage
Strategic Early Stage
Target
30% gross IRR
Stake
Substantial Minority (between
40% - 50%)
Deals
10 –12 deals; INR 15 – 25
crore per portfolio
„Source Right“
• Invest through Direct deals, low
intermediaries
• Streamlined process to identify fit
• Focus on ventures in Tier 2/3
„Catalyze Operations“
• Catalyze Operations by Leveraging
Raisoni Group‘s operational
expertise
• Provide Mentoring
• Network Clients and investee
company
„Exit“
• Take portfolio company to IPO
• Sell Majority stake to
strategic/financial investors
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19. Strategy Implementation
Stage 1 – „Source Right“
The fund will use an
efficient and streamlined
process for it‘s
investment decisions.
A „Deal Team“
comprising of suitable
members will be formed
to think-and-go-through
each potential deal.
Streamlined Investment Process
Source Deals through
network partners and
industry research
(Week 0)
Initial Evaluation of the
investee business model
(Week 1)
First Business Proposal
for potential investment
(Week 2)
Meeting Promoters/
Reference Checks to build
comfort on business /
promoters
(Week 3)
Second Business
Proposal after due
diligence and initial deal
structuring
(Week 4)
Investment Committee
Meeting 1 for pre-
investment approval
(Week 5)
Execution of Term Sheet
(Week 6)
Third party due dilligence
by specialists auditors and
lawyers to reassess risks &
critical success factors
(Week 7 & 8)
Investment Committee
Meeting 2 for any
renegotiation, compliance
check
(Week 9)
Singing of definite
agreements & disbursal of
Funds
(Week 10 & 11)
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20. Strategy Implementation
Stage 2 – „Catalyze
Operations“
The fund will leverage all
resources, relationships
and synergies between
portfolio companies to
ensure additional „alpha“
on post-investment
growth of the investee.
• Strategic Insights
• Networking
• Mentoring
Expert Operating Board
• Move from early stage into
Growth stage
• Implement JV/M&A strategies
• Bolster management team
• Align management-promoter
interests
• Raise debt through Fund‘s
investors
Dedicated Operating
Resources
Inception Inflection
Point
Mid
Growth
Late-
Growth
Maturity
Pre-Investment Profits
Post-Investment
Profits
Alpha
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21. Strategy
Implementation
Stage 3 – „Exit“
The fund will evaluate all
possible exit
opportunities before an
investment is made and
will continually evaluate
options throughout the
life of the investment.
The Investment Team
has broad experience in
achieving liquidity for
investors by using a
variety of exit solutions.
 Ways to Exit
Successful exits are critical to
successful investing!
• An IPO of a Portfolio Company’s shares
in the domestic and/or overseas markets
Listing on stock exchanges
• Companies consolidating their portfolio
may purchase portfolio company at a
premium
Sale to Strategic/Financial
Investors
Refinancing
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22. The Company
Origins of SGR Advisors, Key People & Group Financials
The Market
Indian Education Sector
The Opportunity
PE fund leveraging Raisoni‘s Operational Excellence
The Achiever’s Fund
Strategy and implementation
The Investor Perspective
Potential and risks
August 18, 2022
SGR Achiever's Fund. All Rights
Reserved.
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23. Why should you consider investing?
 The Acheiver‘s Fund has,
 Focus on Education which is a high growth sector for
India
 Strong Management Team & Advisory Board
 Streamlined processes in place to „Source Right“ &
„Catalyze Operations“ of the investees
 Support of Raisoni Group for operational excellence
 Double bottom line results by doing good and doing well
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24. Risk Factors
 The performance of the fund will be dependent upon the operating
performance of the fund's investee companies
 Unforeseen changes in market demand or in the competitive
environment
 Investors will not be permitted to sell or otherwise transfer units
 Investment in the fund requires a long-term commitment
 Fund’s investments may face adverse conditions due to change in
regulations
 Fund’s investments may face adverse conditions due to additional
political and economic changes
 Changes in the fiscal arrangements, including taxation and tax
concessions, may adversely affect the fund’s investments
August 18, 2022
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Reserved.
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