In a recent article for the NMT magazine, authors Arun Kanwar (partner), Arash Fatemian (manager) and Madeline Alcock (manager) provide a comprehensive analysis of the UK nursery sector, detailing its historical investment appeal, current challenges, and optimistic future prospects. It highlights that the UK childcare market is predominantly private, with opportunities for consolidation in a fragmented market presenting attractive investment avenues. Despite recent operational difficulties, such as decreased occupancy rates and increased staffing challenges exacerbated by economic uncertainty and Brexit, the sector is showing signs of recovery.
The authors discuss the significant consolidation in the market over the past decade, with major players like Bright Horizons and Busy Bees leading, alongside notable M&A activities. Current market conditions have temporarily slowed down M&A activity, but long-term growth prospects remain strong, fueled by governmental support through extended childcare offers.
Overall, Kanwar, Fatemian, and Alcock suggest that while the nursery sector faces short-term headwinds, it holds promising long-term potential for growth and investment, driven by supportive policies and a recovering demand for childcare services. They remain bullish on the sector’s prospects, positioning it as an exciting and investable area within the UK’s educational landscape.
You can read the complete article here.
Authors: Arun Kanwar (partner), Arash Fatemian (manager), Madeline Alcock (manager)
