For years, childcare real estate traded at a discount to other net-lease assets. KinderCare's IPO, Harvest's TLE deal, and a $100M early-education fund show that gap is closing fast.
From overlooked to in-demand
Early-education assets historically traded at a discount to single-tenant properties like banks, pharmacies, and quick-service restaurants — largely because investors were unfamiliar with them. Many didn't realize some operators are worth billions and back leases with corporate guarantees.
The pandemic changed that perception, spotlighting childcare's essential nature and the durability of its demand. A Congressional Research Service brief notes some 27 million workers — about 16% of the U.S. workforce — rely on childcare to work.
Dedicated capital arrives
The clearest signs of institutionalization are concrete: KinderCare's October 2024 NYSE listing raised roughly $616 million; Harvest Partners, a 40-year-old PE firm, made early childhood education a priority sector and bought The Learning Experience in 2025; and a $100 million early-education real estate fund launched the same year.
More buyers competing for the same scarce, quality assets supports pricing — good news for owners deciding when to sell.
What it means for sellers
A deeper, more sophisticated buyer pool rewards well-prepared assets. Clean financials, strong enrollment data, and a well-structured lease attract institutional bids that simply weren't in the market a decade ago.
It also means the gap between an amateur sale and an expertly run process is now measured in real dollars — institutional buyers pay for quality, but they underwrite hard.
Reaching the right capital
Reaching these buyers — and presenting your asset the way they underwrite — is where a specialist adds value. The institutions and funds entering childcare want specific things: credit, term, coverage, location.
We connect owners to that capital and package assets to meet its standards.
Find out what your school is worth.
A confidential, no-pressure valuation from a broker who has owned, operated, and sold childcare centers for 30+ years.
