Dozens of childcare centers in Colorado are backed by private equity. Critics fear they put profit before kids

By In The NoCo,

Published February 25, 2025 at 5:35 AM MST

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A photo collage shows four childcare and preschool centers that are backed by private equity or venture capital firms (clockwise from top left): The Learning Experience, Everbrook Academy, Primrose School, and The Goddard School. — "I think what private equity does well is find the corners of any industry where there's money to be made. So in Colorado, that's why we're seeing child care centers backed by private equity chains along the Front Range, in wealthier communities where parents may be able to shoulder tuition increases or fee hikes, which is one of the ways that private equity-backed chains make that profit," says Chalkbeat Colorado journalist Ann Schimke. She's reported on concerns that have led state lawmakers to propose a bill to establish guardrails around private equity-run childcare and preschool centers.

Dozens of childcare and preschool centers in Colorado are run by companies backed by private equity funding.

Private equity firms use investor money to buy companies with a goal of improving them and selling them for a profit. This kind of investment grow and make upgrades, which could be useful in a state like Colorado that has a childcare shortage.

But many private equity firms have a reputation for cutting staff and raising prices. And that鈥檚 concerning to some Colorado lawmakers 鈥� especially since more public money is going to childcare and preschool after the state launched its universal pre-K program a few years ago.

Several legislators at the state Capitol have that aims to establish some guardrails for private equity-backed centers. The proposed rules include requirements to notify parents about upcoming

Journalist Ann Schimke has reported on this issue for Chalkbeat Colorado. She talked with Erin O鈥橳oole about some of the concerns that led to the legislation.

Chalkbeat found 170 childcare centers in Colorado run by chains that are owned or backed by private equity firms. You can read the reporting and see a .

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Dozens of childcare centers in Colorado are backed by private equity. Critics fear they put profit before kids