Mayfield Childcare partners with Finexia to create new incubator vehicle

Mayfield Childcare will partner with leading non bank early childhood education and care (ECEC) financier Finexia to create a new incubator, Steps Early Learning.

The incubator, which will be led by outgoing Mayfield CEO Ashok Naveinthiran and over time become a source of acquisitions for the Group, has thus far acquired ten centres from Genius Childcare and is expected to acquire a further ten centres from Mayfield by the end of the first quarter of 2025. 

Under the terms of the Incubator agreement, Steps will undertake to expand its portfolio in alignment with Mayfield’s strategic growth objectives, guided by a mutually agreed development plan.

Mayfield will retain a right of first refusal over all centres within the Steps portfolio and will be granted an option to acquire centres as they meet specific performance thresholds, on acquisition terms to be determined through an appropriate arms-length process.

“I am excited to lead Mayfield’s new incubator with the common goal of creating long-term sustainable value by delivering high-quality acquisition targets which are de-risked by having a closely aligned partner,” Mr Naveinthiran said. 

“Having the support of Finexia, a leading financier within the sector, as financial partner provides the incubator with a strong foundation and the stability needed to drive strategic expansion.”

Finexia played a pivotal role in the creation of the incubator via the initial financing of the purchase of ten centres from Genius and also given a future commitment to support the broader operation via the provision of working capital as required for the portfolio going forward.

The move is consistent with Finexia’s stated objective to build on its status as the ECEC sector’s financing partner of choice through innovative structures and advice that support ECEC business owners to meet their operational and financial objectives. 

“We are thrilled to have taken an active role in supporting this strategic collaboration between Mayfield and Steps,” Finexia CEO Patrick Bell said. 

“As the leading nonbank financier in the childcare sector, we have tailored a financial structure designed to support Steps in refining its operations, expanding its portfolio and importantly, aligning with Mayfield’s growth strategy over time.”

“We are proud to have Steps, and by extension Mayfield, join Finexia’s network of established, medium-sized operators, reflecting our ongoing commitment to the sector.”