Aug 30, 2026 – 6.30pmThere’s no doubt the country’s childcare industry is in the trenches, with a mix of scandal and poor economics squeezing profits at even the biggest operators. The private equity firms behind the major providers are far from immune, increasingly casting around for a way out of the ailing sector.Partners Group and Quadrant Private Equity think they may have one solution – scale. Partners, which has owned Guardian Childcare and Education for the past decade, is now in early-stage discussions to merge the business with Quadrant’s own operator, Affinity Education. Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones.Kanika Sood is a journalist based in Sydney who writes for the Street Talk column.Angira Bharadwaj is a co-editor of Street Talk. She covers IPOs, capital raises, mergers and acquisitions and other breaking news in Australia’s capital markets. Previously, she covered financial services, state, and federal politics. Send tips to @angirab.60 on encrypted messaging platform Signal.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?