Fairwinds Private Equity looks to sell 45% stake in Pathways

MUMBAI: Fairwinds Private Equity is looking to sell around 45% stake it holds in NCR-based international school chain Pathways, two people with direct knowledge of the plan said. The stake is valued at about Rs 250 crore, which means the PE fund will get more than two times the return on its Rs 100 crore investment made in 2010.

“The process has begun. A number of PE funds have been approached for buying the stake,” said one of the two people quoted above, who is an investment banker. Fairwinds Private Equity was earlier called Reliance Equity Advisors, which was the PE arm of Anil Ambani-led Reliance Group. The fund was acquired by its chief executive Ramesh Venkat in a management buyout and rechristened in August 2014.

“The entire stake held by Fairwinds is up for sale. It is expected to fetch the PE fund around Rs 250 crore,” said the second person, who is a banker.

An email questionnaire sent to Pathways’ promoter Prashant Jain did not elicit a response. Fairwinds spokesperson could not be reached for a comment.

“The promoters of Pathways will also look at selling some stake in this round of fund sale to rival PEs or strategic investors,” the first banker said.

Promoted by Prashant Jain and family, Pathway Group has diversified interests in schools and provides strategic customised quality solutions for educational institutes.

Pathways is the first investment by the PE fund after it raised $200 million in 2010. The fund invests between $20 million and $30 million in companies to get significant minority stakes. It has invested in Shankara Infrastructure Materials, Max Flex and Imaging Systems, VVF and Butterfly Gandhimathi Appliance.