PHINMA Education Holdings, a key subsidiary of PHINMA Corporation (stock: PHN), has officially received an initial Php 2.52 billion investment from global investment firm KKR. This marks the completion of a transaction that was first announced in May 2024 and has now passed all necessary regulatory approvals.
The Strategic Importance of KKR's Investment
The funds from KKR—one of the world’s leading investment companies—are intended to fuel PHINMA Education’s ambitious expansion plans across the Philippines and Southeast Asia. PHINMA Education, which operates a network of schools serving over 150,000 students, is expected to leverage KKR’s global expertise to refine its operations and improve its services.
According to Chito B. Salazar, president and CEO of PHINMA Education, the partnership is focused on key areas such as digital transformation, improving student completion rates, and expanding educational access to underserved communities. These efforts aim to make a significant impact on the quality of education, which remains a critical issue in the Philippines and neighboring countries.
KKR’s resources are also being used to further the company's environmental, social, and governance (ESG) initiatives, enhancing its ability to provide sustainable, high-quality education services.
A Broader Educational Vision
PHINMA Education first entered the education sector in 2004 through the acquisition of PHINMA Araullo University in Nueva Ecija. Since then, it has rapidly expanded its presence across the country. Schools under its umbrella include PHINMA Cagayan de Oro College, PHINMA University of Pangasinan, PHINMA Saint Jude College, PHINMA Republican College, and several others. Now, with KKR’s backing, the company aims to go beyond national borders, beginning with its first foray into Indonesia through Horizon Education.
In a press statement, KKR Philippines’ country chief, Happy A. Tan, emphasized that the partnership aligns with KKR’s commitment to making a positive social impact through investment, stating that this collaboration will help “make lives better through education.”
Financial Highlights of the Deal
PHINMA Education confirmed on October 3, 2024, that KKR’s initial Php 2.52 billion investment represents 70.22% of the total Php 3.59 billion that KKR is slated to invest. In addition, KKR has also acquired shares from several notable stakeholders, including the Asian Development Bank (ADB), the Dutch development bank FMO, and Kaizen Private Equity II Pte. Ltd. These institutions had initially invested in PHINMA Education back in 2019.
PHINMA’s Other Growth Sectors: Hospitality and Beyond
While education remains a core focus of PHINMA, the group is also actively expanding in other industries, particularly in hospitality. PHINMA’s hospitality arm, led by Jose Mari del Rosario, is pursuing aggressive growth plans to increase its hotel room portfolio from 1,230 to 2,000 by 2030. Under the Microtel and TRYP by Wyndham brands, the company aims to cater to both mid-market and modern travelers.
A Sustainable Future
PHINMA’s leadership continues to express optimism about the future. By capitalizing on domestic and international tourism growth, as well as the increasing demand for affordable yet high-quality education, the group is poised to make a lasting impact in both sectors.
As PHINMA Education continues its collaboration with KKR, the company looks forward to further scaling its operations, focusing on Southeast Asia while continuing its mission of making quality education more accessible to all.