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đź”´ PRIVATE EQUITY OWNED

KinderCare

childcare · Portland, OR

PE Firm

Partners Group

Year Acquired

2015

“The largest for-profit daycare in America. PE since 2015.”

The PE Playbook

  • •Partners Group acquired KinderCare in 2015; IPO'd in October 2024 but PE retains 71% ownership
  • •Serves 200,000+ children across 2,400 centers with 43,000+ employees
  • •Directors reportedly pressured to prioritize enrollment rates above all other considerations
  • •Part of a broader PE trend: four of the top five for-profit childcare chains are PE-backed

Since the Acquisition

  • â–¸Annual tuition increases of 4-7% over the past three years, consistently outpacing inflation
  • â–¸Complaints include inadequate staff training, failure to background-check employees, and too few workers for the number of children
  • â–¸CEO compensation reached nearly $2 million in salary and bonuses, with stock options that vest when PE firm makes 2-3x its investment
  • â–¸Despite going public in 2024, Partners Group still controls 71% of KinderCare