Private Equity Finds Opportunity in America's Child Care Crisis

Bloomberg

4 days ago

Parents in the US pay an average of $11,582 per year for child care for children under the age of 15. And private equity sees an opportunity, by racing to consolidate independent daycares. Easy access to capital propels their growth, but child care experts warn that debt‑loaded roll‑ups drive teacher turnover and can implode suddenly, wiping out the access they seek to provide in large numbers. Vermont's new publicly funded program is an example of a model that works - a payroll tax and disclosure of child care center ownership to provide access to those who need it. (Source: Bloomberg)