Tempest Two injects Rs.290mn fresh equity to SLT Campus after management buyout

From left: Savinda Fernando of NDBIB, Vidushini Denipitiya of NDBIB, Sandeep Jayawardena of Tempest PE, Dinesh De Zoysa of AEC, Tempest PE Managing Director Chehan Perera, AEC Chairman Ajita De Zoysa, SLT GCEO Lalith Seneviratne, SLTC Founder President/CEO Ranjith Rubasinghe, SLT Director Mohan Weerakoon PC, NDBIB CEO Darshan Perera, SLT GCFO Sanjeewa Samaranayake, Nilendra Weerasinghe of NDBIB, SLT Group Chief Legal Officer Sonali Wijekoon and SLT Company Secretary Mahesh Atukorale

A consortium of investors put together and managed by private equity firm Tempest PE Partners (a joint venture between Capital Alliance and Insite Holdings) and led by Associated Electricals Corporation Limited has partnered a management buyout of SLT Campus (Pvt.) Ltd, which operates the Sri Lanka Technological Campus (SLTC), a leading education institute located in Padukka, from Sri Lanka Telecom PLC, for Rs.410 million. 

Tempest Two, which is the special purpose vehicle created to facilitate the acquisition, also injected Rs.290 million in fresh equity into SLTC to support the growth plans of the campus.

SLTC is one of Sri Lanka’s fastest growing universities, operating a 24x7, fully residential campus on a scenic 35-acre property in Padukka, with modern buildings. The university offers 25 local undergraduate programmes spread over schools of engineering, technology, IT, business and music. It has an academic faculty of over two hundred and the distinction of creating an environment that supports high-quality research, including facilitating research collaborations with some of the highest ranked universities in the world. This has helped SLTC attract the best academic minds from diverse backgrounds to teach at the university. 

Associated Electrical Corporation Limited Chairman Deshamanya Ajita De Zoysa, who is the lead investor in the consortium commented, “The new investors are committed to supporting SLTC’s future growth potential and to achieving the university’s aim of becoming the premier research university in Sri Lanka. SLTC has developed a strong and progressive academic and management team. The investor consortium believes that through their collective experience and leadership across multiple industry sectors, they could add significant value to produce innovative, focused and employable students who will contribute greatly to Sri Lanka.” Speaking on the transaction,  Tempest PE Partners Managing Director Chehan Perera said, “We are truly honoured to be able to support Ranjith and his team take SLTC to greater heights, not just within a Sri Lankan context but in the South Asian region. From our inception in 2018, a key area of focus for Tempest has been education and we could not have asked for a better maiden opportunity to participate in this burgeoning sector than through the unique and fast-growing institution that is SLTC. One of the main attractions of SLTC is the academic structure of the campus, which is overseen by an independent academic council, with strong academic teams in place across five disciplines. Working closely with the management, we will look to expand the reach of SLTC and leverage its strong academic infrastructure to set up a city campus, where we can develop exciting foreign partnership programmes, leveraging our relationships with leading education groups overseas. 

We are extremely thankful for the unwavering support of Deshamanya Ajita De Zoysa and the board of AEC, who have come forward as the lead investor in this transaction. We are also thankful for the support given by the leading business personalities, who form the rest of our consortium. All of them have a common goal of wanting to support the much-needed development of higher education in Sri Lanka. The consortium includes Jetwing Group, Finco Holdings, Perera & Sons (P&S), ManSek Investments & Insite Holdings. Lastly, we appreciate the support given by the board of Sri Lanka Telecom (and its advisors NDB Investment Bank) to ensure that the transaction was structured and completed in a sustainable manner so that the development of the campus was not affected in any way.”

The management buyout was led by SLTC Founder President/CEO Ranjith Rubasinghe and his senior management team to help fulfil their vision of launching SLTC into becoming the island’s premier engineering and technology university.