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Key Points:
- Successful IPO: KinderCare’s shares began trading on the NYSE, priced at USD 24.00, with Partners Group retaining a 71% stake.
- Industry Leadership: KinderCare serves over 200,000 children across 2,400 centers, making it the largest early childhood education provider in the U.S.
- Employee Excellence: KinderCare has won the Gallup Exceptional Workplace Award for eight consecutive years, highlighting its strong work culture.
Partners Group, one of the world’s largest private market investment managers, announced that shares of its portfolio company, KinderCare Learning Companies ("KinderCare"), began trading on the New York Stock Exchange (NYSE) on October 9, 2024. This significant milestone follows the initial public offering (IPO) of KinderCare, the leading provider of early childhood education services in the United States. The company's stock is listed under the ticker "KLC," marking a new chapter in its corporate growth.
IPO Overview and Partners Group’s Stake
The IPO saw the release of 24 million shares of KinderCare’s common stock, priced at USD 24.00 per share. Following the first trading day, the stock closed at USD 26.13, reflecting positive investor sentiment. Partners Group, acting on behalf of its clients, remains a major shareholder, holding approximately 71% of KinderCare’s common stock after the IPO. This significant stake translates into an exposure of approximately EUR 53 million (USD 58 million) for Partners Group's PGPE Ltd, representing a 50% uplift from the company's pre-IPO valuation.
However, PGPE Ltd is not expected to realize any immediate financial benefit from the IPO due to a 180-day lock-up period that restricts the sale of shares by pre-IPO stockholders, company executives, and directors. This period is designed to ensure market stability and gradual stock release.
KinderCare’s Leadership in Early Childhood Education
Founded in 1969, KinderCare is recognized as the largest early childhood education provider in the United States by center capacity. The company serves more than 200,000 children across its 2,400 centers and employs over 43,000 teachers and staff members. KinderCare operates a diverse portfolio of brands that cater to different aspects of early childhood education and care.
- KinderCare Learning Centers: These community-based centers provide early childhood education and care for children from six weeks to 12 years old.
- Crème Schools: Known for its premium education model, Crème Schools use themed classrooms to engage children from six weeks to 12 years old.
- Champions: This brand offers before- and after-school programs designed for school-aged children, providing flexibility for working parents.
In addition to serving families directly, KinderCare partners with employers across the country to meet workforce childcare needs. Through its corporate care solutions, the company offers customized family care benefits, including on-site childcare, tuition benefits, and backup care services, helping businesses provide essential support to working parents.
Commitment to Excellence and Employee Engagement
KinderCare’s focus on creating an inclusive, high-engagement work culture has earned the company the prestigious Gallup Exceptional Workplace Award for eight consecutive years. This honor, which only two organizations worldwide have achieved for this duration, highlights the company's dedication to maintaining high employee satisfaction and retention, which ultimately benefits the quality of care provided to children.
Partners Group’s Role in KinderCare’s Growth
Partners Group acquired KinderCare in 2015 and has played a crucial role in driving the company's business transformation. Under its stewardship, KinderCare optimized its center footprint, expanded same-center revenue, and boosted occupancy rates. Additionally, the company has made strategic investments in its curriculum, human resources, and technology infrastructure to support continued growth and maintain a commitment to delivering high-quality education.
