Young Academics confirms new strategic investment from US firm amid changing sector conditions

Sydney-based early learning provider Young Academics has confirmed it has sold a minority stake to US-headquartered private equity firm Seidler Equity Partners, marking a rare move in the early childhood education and care (ECEC) space amid ongoing scrutiny and operational pressures.

The investment, first reported by The Australian Financial Review, values the 40-centre provider at an estimated $200 million, though the terms of the deal have not been publicly disclosed. The transaction was led by PwC.

Founder and major shareholder James Kazzi said the deal would support the provider’s expansion across Greater Sydney.

“We’re thrilled about the strategic alliance with Seidler Equity, a partner that shares our vision for delivering exceptional early childhood education,” Mr Kazzi told AFR. “Seidler will help us to expand our high-quality, community-minded offerings in Greater Sydney’s growth corridors.”

Young Academics was founded in 2009 and has grown steadily, with 19 new centres under construction and a further pipeline of up to 50 sites. The company reports its revenue doubled between 2023 and 2024, reaching $80 million. It expects to exceed $100 million in the current financial year.

Mr Kazzi, will retain control of the business, with the existing management team remaining in place.

Investment in a complex moment

The announcement comes at a time of growing complexity for the early learning sector. Educator shortages, rising operating costs and a renewed focus on safety and accountability have placed significant pressure on services across the country. Media investigations, policy reform and compliance actions have also heightened public scrutiny of large-scale providers.

In this context, sector leaders have consistently emphasised the need for sustainable, community-centred growth that prioritises quality, workforce wellbeing and children’s rights above commercial returns.

For educators and operators, the deal is a timely reminder that while the sector may attract investment, its strength lies in its people, places and purpose. Sustainable growth in early learning is only possible when children’s safety and educators’ wellbeing remain front and centre.

This article includes information originally reported by The Australian Financial Review.