Private equity and preschools

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Some franchisors in the preschool space are PE owned but the schools themselves are owned by independent operators. An important distinction. You can have a bunch of schools of the same brand that are completely different. The important thing is how the school owner treats their management/staff and families. Do they prioritize the children and the program and provide good salaries/benefits to attract and retain the best staff or do they cut corners and keep bad staff. Turnover is not always a bad thing at the teacher level.

PE is still gonna want its money

Exactly- i feel like the question i always had was- why am i paying so much while the teachers make so little- and this is prob contributing to that imbalance. I dont want to make rich ppl richer with my kids tuition

Yes. And when you are paying $3k plus per month and there are new teachers every week that is a clear sign your money is not going to the teachers or to effective management of the daycare. Daycare is a tough sector to run a business in for sure but PE lures in UMC families through various ways (employer subsidies, shiny facilities) but don't actually provide better care. It is often (but not always) worse care.

[Anonymous]

Anonymous wrote:Ugh, I'm sure it's the next thing. Like healthcare, real estate, veterinary offices, consumer products, food and beverage. Of course education is next.

On the micro level, there's no reason it wouldn't be a perfectly good environment for a kid. With preschools, teacher quality and ratios is the central. So if the teachers are good and there are enough of them, it's probably fine. It's fairly heavily regulated and a corporate owner will have systems in place ensure they are complying with safety and health regulations. It's probably fine for a kid right now.

On a macro level, it's terrible. Private equity extracts value. Long term, their profits will come from increased fees, lowering pay or limiting the number of staff, eliminating any programs that don't offer profit. Expect to pay more for things that didn't used to cost anything. Expect rules like not allowing you to send in lunch or a snack, then charging extra for food that complies with your child's dietary restrictions. Just anything they can do to get another dollar out of you.

It's always a bad sign.

+1

[Anonymous]

This is what Trump was installed for.

Project 2025. Yes private equity owning education accross the country was written down.

If you live in VA thank L Louise Lucas for your public schools not already being owned by private equity. Youngkin and DeVoss have already created companies for this exact thing and for maternity homes. Keep this in mind next time you vote for Republicans in your state house and state senate. Don't!

[Anonymous]

Anonymous wrote:This is what Trump was installed for.

Project 2025. Yes private equity owning education across the country was written down.!

You must be kidding. The PE involvement in private education long pre-dates Trump’s first term. The landslide started during the first Obama term. BASIS is owned by a PRC party-influenced PE “company”, for example.

[Anonymous]

If you really want to be freaked out read about how ~90% of fertility clinics are PE owned.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is what Trump was installed for.

Project 2025. Yes private equity owning education across the country was written down.!

You must be kidding. The PE involvement in private education long pre-dates Trump’s first term. The landslide started during the first Obama term. BASIS is owned by a PRC party-influenced PE “company”, for example.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is what Trump was installed for.

Project 2025. Yes private equity owning education across the country was written down.!

You must be kidding. The PE involvement in private education long pre-dates Trump’s first term. The landslide started during the first Obama term. BASIS is owned by a PRC party-influenced PE “company”, for example.

Wait, tell me more. I googled and couldn’t find anything.

[Anonymous]

Anonymous wrote:If you really want to be freaked out read about how ~90% of fertility clinics are PE owned.

ohh yes do share more!

[Anonymous]

Communikids is a local chain but is funded through private equity.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I cNt comment on that school but if PE is a trend coming to daycares, that's horrible. Mine is part of a small local chain and for example our ratios are better than the state standard. There is a lot of attention. That is part of the brand and yes it's $$$ (arent they all). I could see PE really "optimizing" staffing in a way that sucks for the kids and lowers teacher retention. They don't have the same attachment to the kids or the quality and reputation of the product, it's all fungible for ROI.

If yours is a chain it probably has private equity backing. If it’s not a non-profit, it’s backed by private equity.

DP

no, small local for-profit chains (e.g. in MoCo Kidsco Jr., Children in the Shoe, Bright Eyes Early Learning) are not likely to be PE -backed. These are typically family-owned companies. PE-backed daycares in our area include Bright Horizons, Childtime and Goddard School.

[Anonymous]

Anonymous wrote:If you really want to be freaked out read about how ~90% of fertility clinics are PE owned.

Or about the quarter of emergency medicine groups owned by PE.