CLSA acquires Japan childcare operator

The private equity firm invested via its USD 450m Sunrise Capital IV fund, which targets companies with enterprise valuations of JPY 5-15bn (USD 43-130m) and strong potential for expansion within Japan.

Established in 1989, Task-Force manages about 120 childcare facilities nationwide with a focus on urban areas, as well as corporate child care centres. There are also commercialised services in experiential learning and afterschool care. The company claims to be the only operator in its category that does not rely on government subsidies.

The plan is to support Task-Force by strengthening management and jointly pursue growth initiatives. There will be no material changes to business operations or brand names. CLSA CP describes its management support approach as "body on" and typically seconds investment professionals to businesses.

“Sunrise IV has a high regard for the company's management and childcare philosophy, as well as the current business practices in place to ensure high-quality childcare services,” CLSA CP said in a statement.

“In addition, their flexible approach to leaving children at facilities, combined with the social nature of the business, which includes contributing to the diversified needs of women, is well received by customers.”

CLSA CP has experience targeting Japan’s children and family demographic from various angles. Sunrise III acquired toymaker Bloom Group, which specialises in toys for elementary and middle-school-age girls. Last year, Sunrise II exited a majority position in cram school operator BC Ings, said to be the first-ever private equity investment in Japan’s education sector.

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• Topics
• North Asia
• Consumer
• Buyouts
• Japan
• CLSA Capital Partners
• Education