The big money behind childcare operator at the heart of alleged sex abuse scandal
The for-profit childcare sector at large has come under intensifying pressure following allegations that Joshua Dale Brown had allegedly sexually abused children at several Victorian centres, but the Quadrant Private Equity-owned Affinity has also been dogged by other alleged incidents.
Brown's case is still being investigated and remains before the courts.
Queensland Police charged a 21-year-old male employee of an Affinity centre in Brisbane on July 10 over an offence alleging indecent treatment of a child. That came as the list of centres that Brown worked at continued to balloon, including additional centres owned by Affinity.
Scrutiny of Affinity has been limited compared with the ASX-listed G8 Education – which has had hundreds of millions of dollars wiped from its market capitalisation after the charges against Brown were made public – despite Affinity owning 13 of the 23 centres where Brown worked.
But financial statements lodged with the corporate regulator by the Brisbane-headquartered Affinity portray a company on an expansion binge since Quadrant bought it in 2021.
Financial statements lodged with ASIC show that in the 2024 calendar year, Affinity posted an after-tax loss of more than $20 million, with huge debt bills playing a significant role, despite underinvestment in staff compared with the rest of the industry.
Affinity's accounts for the financial year ending December 31, 2024, show it was saddled with $614 million worth of loans, just shy of the $650 million that Quadrant paid for Affinity in 2021 when the company borrowings totalled $325 million.
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