Article Alert- ‘Learning Curve – PE Investment in K-12 Schools’ published on Lexology

An article titled, ‘Learning Curve – PE Investment in K-12 Schools’, authored by Partner Chandrasekhar G. Tampi, published on Lexology.

The article examines the evolving landscape of private equity investment in India’s K-12 school education sector, particularly the regulatory and structural considerations that make the sector both attractive and challenging for institutional investors. It traces the relevant constitutional and judicial framework, including key Supreme Court jurisprudence on educational autonomy, fee regulation and profiteering, and examines the implications of the RTE framework, school affiliation requirements and foreign investment regulations.

The article also discusses the practical challenges faced by PE investors, including the not-for-profit structure of schools, restrictions on fee and profit distribution, FDI/FCRA considerations, management and infrastructure company structures, regulatory enforceability, RTE reimbursements and potential exit routes.

This is the first part of a two-part series. Part II will examine the structuring options available to investors and the extent to which these structures have worked in practice.

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