Private equity’s growing scrutiny in the U.S. child care industry is "long overdue," according to Bear Cave founder Edwin Dorsey, who says lawmakers should broaden their focus to include safety concerns at private equity-backed daycare centers.
"I think this scrutiny is long overdue, and I hope lawmakers also focus on safety issues at private equity-sponsored daycares," Dorsey said in emailed comments to Benzinga.
Dorsey’s comments come as lawmakers examine private equity’s role in child care and a new academic study offers a more nuanced picture of the industry.
The study found that private equity does not appear to be the primary reason daycare has become unaffordable. However, it found that 75% of private equity-backed child care centers are concentrated in just 5% of U.S. counties, particularly in markets where child care is already in short supply and in states with less stringent staffing requirements.
Bear Cave Raises KinderCare Safety Concerns
