Up for grabs is a larger slice of Australia’s $13.7 billion a year childcare services, which is backed by government funding and growing at an estimated 3.6 per cent a year, according to IBIS World data.
The biggest players are Goodstart Early Learning – what was ABC Learning – which has an estimated 10.2 per cent of the market, and ASX-listed G8 Eduction with 6.4 per cent.
Others below the 5 per cent mark include Affinity Childcare (3pc), Guardian Child Care (3 per cent), Busy Bees (2pc) and KU Children’s Services (2pc), and thousands of smaller businesses.
Crescent Capital, via its $800 million fund VI, invested alongside Green Leaves managing director Michael Hovey and directors Grant Cadee and Glenn Ryan, among other individuals.
The firm’s managing partner, Michael Alscher, and offsider Michael Baster have joined Green Leaves’ board.
Crescent Capital joins private markets rivals Quadrant Private Equity and Partners Group in the childcare sector. Others that have previously played in it include Anchorage Capital, Wolseley PE and Navis Capital.