China schools deal puts RRJ at top of class

Asia-focused private equity firm RRJ Capital has made a near-threefold return on its investment in Chinese private education company Tsingda eEDU in less than a year, a source familiar with the situation said, underscoring the soaring demand for private schools and supplementary education as the country’s middle class grows.

The private equity firm has sold its roughly 20% stake in Tsingda for about $140 million to a Chinese trust company. The sale values Tsingda at about $700 million, similar to China Maple Leaf Education, the first Chinese school operator to list in Hong Kong, the source told FinanceAsia.

Completion of the deal implies RRJ...