THE NUTS AND BOLTS OF CAMPAIGNS

^{Planning a private equity in childcare campaign}

Campaigns

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Campaigns

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Theory Of Change

How we win is by executing strategies, and tactics aligned with those strategies, that build enough pressure on decision makers to implement your demands

If we ______, then we can win_______ from ___________.

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WHAT TO KNOW ABOUT CHILDCARE AND PRIVATE EQUITY

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Background

Investor-backed child care is 10-12% of the child care market in the United States - these centers care for 750,000 children every single day

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The three largest, KinderCare, Learning Care Group, and Bright Horizons, operate [321 child care centers in California]

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Resource: Toddlers and Investors Aren’t Playmates: The Threat of Private Equity in Childcare

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Size of private equity-owned chains

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Source: Toddlers and Investors Aren't Playmates

Problems with Private Equity in childcare: �Kids aren’t a business!��

1. High Turnover
• These centers are almost twice as likely to have a high turnover rate among staff because they might cut pay, benefits, or staff hours — or hire fewer teachers — to save money.
2. Low Quality
• Program quality is lower because  with fewer teachers and less money for toys, books, food, or repairs, the environment is harder to maintain.
3. Only Serve Families that Can Pay Big $$$
• They intentionally cater to an affluent clientele or large businesses to charge excessive fees, investor-backed chains serve an extremely small proportion of low-income children. They want to make more money fast, so they may charge families higher tuition.

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Problems with Private Equity in childcare: �Kids aren’t a business!��

4. Threaten Community based, Community owned childcare
• PE companies can use capital advantage to consolidate the CC market leaving smaller community-based child care programs vulnerable to buyouts. -They may lobby for public funding and regulations that place strain on small childcare businesses
5. Threat to the Sector 
• PE companies sole pursuit of profit leads to high risk behavior-  Childcare is a socially important industry that should be protected—especially if a significant share of their revenues come from public funding. 
6. Childcare Worker Pay Effects Teachers and Kids
• Profit motives incentivizes low pay-  Child well-being is directly tied to conditions, pay and benefits of classroom teachers.

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Discuss how YOU are affected by this.

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What are Private Equity Firms? How Do They Operate?��

The need to increase profits quickly above anything else leads private equity firms to cut costs, lay off workers, and reduce quality of services and then they sell it fast for a profit.�

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Private Equity funds pool money from wealthy investors, and use that money and large bank loans to take control of businesses for a short period of time: They buy a business — like a child care center, housing, toy stores and take over the day-to-day operations.

They want to restructure those businesses and resell them at a profit: They cut costs to make more money and pay off their debts.

Key Questions to Consider��

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How do we curb PE’s power in childcare?

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CASE STUDIES

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Corporate Campaigns ex: Parent Voices CA

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CORPORATE CAMPAIGN: �PVCA and La Petite

Demands were generated by:

• Calling an organizing meeting of parents and teachers by Parent Voices of CA
• Learning about American Securities
• Identifying their problems
• Demanding to speak with decision makers

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Campaigns for Funding, with Guardrails

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Executive/Regulatory Campaigns

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