JSE-listed private education company Curro Holdings signed an investment deal with Old Mutual and the PIC on Tuesday to expand private education to those who cannot afford it.

The deal would see the number of private community schools, also known as Meridian schools, increase to 11 in the next seven years, Curro CEO Chris van der Merwe said in a statement.

Old Mutual Investment Group SA (Omigsa) provided a R400 million loan while Curro injected R40 million into the initiative.

"This is meant to target families that earn R200,000 a year. These schools will not be built in affluent areas, as we want private schooling to be accessible to all.

"These schools, of which three are already in operation under the Meridian banner, are more accessible and affordable than other Curro schools. School fees range from R900 to R1300 per month."

The Public Investment Corporation, Africa's largest pension fund manager, originally approached Omigsa to find ways to address a shortage of affordable schools in South Africa.

"This led to the establishment of Omigsa's schools and education investment fund of SA, which has already allocated more than R500 million for education projects."

Christine Glover, head of development impact funds at Omigsa alternative investments, said the funds provided capital for infrastructure expansion and could also be used to train teachers.