By Zhang Ran (China Daily)
Updated: 2007-09-05 10:51

Global private equity firm The Carlyle Group said yesterday it has invested US$20 million in NeWorld Education Group, a Shanghai-based language institute specializing in Japanese.

It is the first time Carlyle has invested in a Chinese education company. The investment, which was funded by Carlyle Asia Growth Partners III, will fuel NeWorld's nationwide expansion in three main business lines.

NeWorld, set up in 1997, has developed a significant presence in Japanese language training, with a network of 65 schools in 13 Chinese cities. The company has more than 30 percent of the Japanese language training market in Shanghai and 5 percent nationwide.

Carlyle Asia Growth Partners III, which focuses on high-growth Asian companies, has invested in seven projects in China since it was established last year with $680 million under management. These companies account for more than half of the fund's portfolio.

NeWorld is the fund's second investment in the education sector after a South Korean transaction in May.

Carlyle refused to disclose the size of its stake in the Shanghai company. Wayne W. Tsou, managing director and head of Carlyle Asia Growth Partners, said the private equity firm will continue to look for investment opportunities in educational companies.

"China has a large and rapidly growing education market that is powered by economic expansion, rising individual disposable incomes and the growing importance of language proficiency in career development," he said.