MC EXCLUSIVE KKR planning fund-to-fund transfer for school chain Lighthouse Learning, formerly EuroKids, as part of internal rejig

KKR planning fund to fund transfer for school chain Lighthouse Learning as part of internal rejig

Six years after picking up a majority stake in Lighthouse Learning (formerly EuroKids International), KKR is in advanced stages of an internal realignment exercise as part of which the US private equity giant plans to transfer the leading Indian school chain from one fund to another, four persons in the know told Moneycontrol.

"Due diligence is near completion and the proposed deal is at an advanced stage. The plan is for an internal transfer of the portfolio firm from the current fund to another fund within the KKR umbrella. It is likely that new minority investors may come in the transferee fund, which may see an opportunity for further value creation."

Two other persons confirmed the above.

KKR had made its investment in Lighthouse Learning (formerly EuroKids International) in 2019 from its Asian Fund III. It was immediately unclear if the transferee fund poised to house the portfolio firm going ahead is an existing one or a new one.

In April 2021, KKR had announced the final close of KKR Asian Fund IV, a $15 billion fund focused on investments in private equity transactions across the Asia Pacific region.

Last year, in March, Bloomberg reported that KKR was exploring options for Lighthouse Learning (formerly Eurokids International), including a potential sale for $1 billion.

A fourth person told Moneycontrol, "KKR may want to hold on longer and grow the asset further. At a later stage, they can always evaluate the value unlocking route again if desired."

The four persons quoted above spoke on the condition of anonymity.

When contacted, KKR declined to comment while an email to the school chain was left unanswered at the time of publishing this article.

According to a September 2024 report by ratings agency Crisil, Alpha Asia Holdings II Pte Ltd (investment arm of KKR & Co Inc) is the majority stakeholder (92.45 percent) in the LightHouse Learning Private Limited group while Prajodh Rajan (Co-founder and Group CEO) holds the balance 7.55 percent.

On September 5, 2019, KKR said it had completed the acquisition of a controlling stake in the EuroKids franchise from the existing investor consortium, led by Gaja Capital. The private equity firm had acquired Kangaroo Kids and Billabong High franchise in 2017.

As per its website, Lighthouse Learning (formerly EuroKids International) is a leading early childhood and K-12 education group. Over 190,000 students are part of the group, which has a presence that spans 1,700 preschools and 60 K-12 schools that involve 1,500 women entrepreneurs and a direct and indirect workforce of over 22,000 people, the website adds.

In May 2025, home grown Multiples Alternate Asset Management, the private equity firm that has backed startups such as Delhivery, Acko and Dream Sports, raised $430 million for a continuation fund to extend its investment in three portfolio companies — Vastu Housing Finance, Quantiphi and APAC Financial Services.

The transaction allows investors in Multiples Fund II to monetise their investments while enabling the firm to continue holding on to high-performing assets, the company said.

The continuation fund, which was oversubscribed, is backed by four global investors — HarbourVest Partners, Hamilton Lane, LGT Capital Partners, and TPG NewQuest. Some existing Fund II investors have also rolled over their commitments into the new vehicle, the announcement added.