Cathay Capital Announces Its Investment in Guanghua Education

May 4, 2020

Cathay Capital has recently invested in Guanghua Education, a leading private education network providing high quality international high school curricula (A-level and AP) and bilingual K12 curricula to Chinese students.

International education is the fastest growing sub-sector within the Chinese private education sector. As disposable incomes are growing in China and overseas universities are expanding sources of funding, more Chinese students are willing to go abroad to study. Chinese parents prefer to let their children go to private K12 international schools in China when they are young, and then go abroad when they are more mature.

Guanghua Education is a premium private school operator in China with extensive A-level teaching experience. It has a successful college placement track record and owns strong brands in A-level education. Currently, Guanghua’s portfolio consists of (i) four majority-owned schools, (ii) four minority-owned schools and (iii) two cooperative programs. Over the past eight years, 100% of Guanghua graduates have attended colleges or universities upon graduation and approximately 80% have been accepted into the world’s top colleges or universities such as Cambridge, Oxford, LSE, Imperial College, UCL, MIT, Stanford, Chicago and NYU (among others).

Guanghua Education Group aims to provide high-quality international education to meet students’ growing demand for high school international curricula. With Cathay Capital’s support, the company plans to acquire high quality private schools in China, Europe or the United States to diversify its offerings. These potential acquisitions will help the company to expand vertically and horizontally, witha significant upside.

Zongyu Lu, Founder of Guanghua Education, declared: “We are very pleased to welcome Cathay Capital. We are convinced that Cathay’s rich resources in the US and European education industry will help Guanghua to build more connections with overseas K12 schools and education institutions.”

Mingpo Cai, President of Cathay Capital, added: “Cathay’s network in the education sector and in capital markets will help Guanghua to diversify its university pool, to provide students with more choices but also to assist the company in screening more qualified M&A targets.”