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Private funds are increasingly channelling capital into education assets – from K-12 and international schools to tertiary institutions – attracted by their long-term demand stability and growth potential. In Asia Pacific especially, where quality education is seen as a vital lever for upward mobility, demand for supporting assets continues to outpace supply, creating significant opportunities for value creation.
In April 2025, Keppel announced the first close of the second vintage of its flagship Keppel Education Asset Fund series, securing approximately US$307 million in committed capital from both returning and new Limited Partners (LPs) across sovereign wealth, insurance, pension and endowment institutions.
The Keppel Education Asset Fund series focuses on strategic value-add investments in education-related assets and facilities, supporting early learning, K-12, higher education, tertiary education and student accommodation, with a focus on the Asia Pacific region.
Well-regarded for their defensive characteristics, education assets make attractive investments, particularly during times of economic uncertainty. Carina Lim, CEO of Keppel Education Asset Funds, said, "Despite the volatile environment, the demand for high-quality education remains strong. Students will always need to learn, be it locally or abroad, and the Keppel Education Asset Fund series is strategically positioned to meet the growing needs in Asia Pacific, where there is a premium placed on quality education."
“With rising enrolments and fees, and an underserved student accommodation market, Asia Pacific presents exciting opportunities for investors seeking exposure to this defensive asset class. We have seen strong momentum in our fundraising as the sector gains increasing institutional interest. Supported by a strong deal pipeline of US$3 billion, we have expanded Fund II’s target to US$1 billion and will harness our value-add capabilities to deliver strong risk-adjusted returns to our LPs,” Lim said.
The demand for high-quality education remains strong. Students will always need to learn, be it locally or abroad, and the Keppel Education Asset Fund series is strategically positioned to meet the growing needs in Asia Pacific, where there is a premium placed on quality education.
Keppel’s private fund platform is gaining ground in Asia Pacific’s education sector, with Fund I delivering over 40% average value uplift across assets in Singapore and Japan. Anchored by long leases and diversified across Australia, Japan and Singapore, Fund I has generated stable cashflows while creating value through strategic repositioning and asset enhancements.
Recent milestones underscore Fund I’s value-adding capabilities. In Singapore, a newly acquired eight-storey commercial block near the National University of Singapore is being transformed into a flagship international K-12 campus. In Australia, Reddam House North Shore – part of the global Inspired Education Group – officially opened in January 2025. The repurposed North Sydney property now accommodates nearly 500 students, with capacity for up to 1,350, offering a forward-thinking, state-of-the-art learning environment.
Underscoring its strong execution track record, Fund I has also outperformed on two divestments, namely a K-12 campus in Singapore and an onsite student accommodation asset in Japan.
"We believe that high-quality education assets, including student accommodation, will continue to perform well in the long run. As a successor to our first fund, Fund II builds on a proven track record, targeting established tenants and long-term leases to deliver stable, resilient cash flows. As we continue to seek high-quality opportunities, our focus is on generating attractive risk-adjusted returns while providing downside protection, delivering strong value to our LPs," Lim said.
