'The authors say the findings are ‘very concerning’, given that the UK Government contributes an estimated £5.6 billion in funds and subsidies to support early years childcare and education in England.
Antonia Simon (Social Research Institute), Associate Professor and lead author of the report, explained:
“Many of the companies that are able to buy up parts of the nursery sector, because of the government’s funding model, are heavily reliant on private equity funding and have growing debts and low to negative operating reserves, placing such provision at risk of collapse.
"The complex financial structures of these companies involve foreign investors and shareholders which are used, alongside public money, to expand their market share. While shareholders in the private equity companies and their senior executives’ may profit from investing in such companies, little of this money is being reinvested back into the sector.'
https://www.ucl.ac.uk/ioe/news/2022/jan/nursery-sector-risks-being-damaged-large-corporate-takeovers