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Phoenix invests to support growth of Just Childcare

Phoenix Equity Partners (Phoenix), the UK mid-market private equity firm, is making an initial investment to support the future development of Just Childcare Limited (Just Childcare).

Phoenix is investing alongside the founders of Just Childcare, David and Jacqueline Johnson, having previously worked successfully with David Johnson when the Phoenix 2001 Fund invested in Acorn Care & Education. As a result of this long-term relationship, Phoenix invested in Just Childcare without a competitive bidding process.

 
Since its formation in 2004, Just Childcare has acquired six day nurseries, with a seventh opening shortly, all in the Northwest of England. Phoenix sees an opportunity to build a leading business in this sector through bolt-on acquisitions and new openings, for which it is committing substantial additional funding.
 
The day nursery sector is widely fragmented and has a number of very positive underlying drivers, including an increasing proportion of families with two working parents, a trend towards the use of nurseries rather than informal childcare from family and friends, plus increasing government support for the sector because of the benefit to the UK economy.
 
Commenting on the investment, James Thomas, Managing Partner at Phoenix, says: “David is an experienced and entrepreneurial CEO with whom we have successfully worked before and we are excited at the opportunity to back him and Jacqueline in this new venture.
 
“This is an attractive sector with clear opportunities to build a significant group and we are proud that as a leading private equity firm we can play a part in making a difference in such an important area of the economy.”
 
David Johnson, CEO at Just Childcare, says: “Having worked in the Children’s sector for more than 30 years, I know that quality is paramount in everything you deliver. Phoenix has that commitment to providing quality childcare, as we do, and this is an exciting opportunity that will enable Just Childcare to extend its provision of nursery places to a greater number of parents.”
 

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