Already a subscriber?Partners Group expects to restart a sales process for Guardian Childcare this year, after the competition regulator’s inquiry into the sectorto sell the early learning
The ACCC was asked to scrutinise the profitability of private equity-owned businesses such as Guardian and Quadrant’s Affinity Education, among others. Yet despite soaring fees for early learning operators, the inquiry found one in four companies in the $17 billion industry made meagre returns or even logged losses.
“Historically, you never have a period longer than three years with low activity,” said Partners’ co-founder Urs Wietlisbach, adding that deal volumes had been subdued since the middle of 2022. “We are business builders, not deal makers. A deal has a lot to do with finances, and putting it together … takes a company, puts incredible leverage on it and sells off the pieces. It is pure financial engineering,” said Mr Wietlisbach, who was in Sydney to address some 300 clients last week.