KinderCare Learning Companies Makes NYSE Debut

By Jaiveer Shekhawat and Echo Wang

(Reuters) – Partners Group-backed KinderCare Learning Companies achieved a market valuation of approximately $3.1 billion after shares opened 12.5% above its initial public offering price on its NYSE debut on Wednesday.

KinderCare's shares opened at $27, following an offering priced at $24 per share, which raised $576 million.

Rising Demand for Childcare

The demand for childcare services in the U.S. is increasing as companies implement return-to-office protocols post-pandemic and more women enter the workforce.

"All the growth opportunities we've been delivering over the last few years is what we're going to continue to do, and do it (at a) more accelerated (pace)," said Paul Thompson, CEO of KinderCare.

He added, "We'll focus on new center openings through Greenfield (investment). And we are continually pursuing smaller (deals), what we refer to as tuck-in acquisitions…(that) will continue as well."

About KinderCare

Founded in 1969, KinderCare operates several brands including KCLC, Crème School, and Champions, providing daycare and early childhood education for children aged six weeks to 12 years.

As of June, the company can accommodate over 200,000 children across its centers, making it one of the largest private providers of early childhood education. Most of its revenue comes from these centers, which reported $1.25 billion in the first half of 2024, a nearly 5% increase from the previous year.

KinderCare was initially set to go public in late 2021, but the listing was postponed due to "regulatory delays."

Their listed peer, Bright Horizons (NYSE:BFAM) Family Solutions, holds a market capitalization of about $7.9 billion.

Swiss private equity firm Partners Group owns a 71.1% stake in KinderCare, remaining a controlling shareholder.

The offering was underwritten by over 10 Wall Street banks, including Goldman Sachs, Morgan Stanley, Barclays, and JPMorgan.