Private equity firms to Scramble for exit after china’s new torturing rules

China’s move to ban tutoring firms from making a profit from teaching core school subjects and raising capital is set to trigger a scramble among venture and private equity investors to find an exit after pouring billions of dollars into the sector.

Stricter regulations are expected with China looking to ease pressure on children and the cost burden on parents that have contributed to lower birth rates, private equity industry sources say they were surprised by the severity of the rules that could kill many companies and block their exits.

As many, Private Equity (PE) investors have invested in a number of online education apps targeting school-aged children. These companies are going to take a hit with large layoffs coming. There is nothing Venture Capitalists (VC) and PE investors can do.

Source: Financial Express