Full list of 400+ foreign-owned childcare centres across the country

Investors from Hong Kong, Singapore, Canada and the US own major stakes in over 480 childcare centres nationally while raking in millions in grants and subsidies. See the list.

Foreign-owned childcare providers operate over 480 centres nationally, raking in billions in revenue and generous taxpayer funded childcare subsidies and grants.

Investors from Hong Kong, Singapore, Canada and Switzerland hold significant shares in private-for-profit providers across the nation, as the sector faces a reckoning over allegations providers seek profit over quality care.

At Senate Estimates on October 10, Greens Senator Steph Hodgins-May identified four large majority or partially foreign-owned providers: Guardian Childcare and Education, Busy Bees Early Learning, Only About Children and Sparrow Early Learning.

A fifth provider not mentioned, Montessori Academy, is also partially foreign owned.

Department of Education assistant secretary Brendan Moon confirmed the department does not track the ownership structure of providers, raising serious questions about whether other foreign-owned providers are operating in Australia.

The big players

The largest foreign owned provider is Guardian Childcare and Education, which according to government website Starting Blocks operates 182 services across NSW, Victoria, Queensland, South Australia and ACT.

It is majority owned by Swiss-based private equity firm Partners Group, which manages over $150bn USD in assets globally.

Guardian generated $553m in revenue in 2023-24, but operated on a loss of $46.5m.

In October, The Australian reported Partners had renewed efforts to sell the business, 10 years after it purchased Guardian from Navis in 2016 for $440m.

Busy Bees operates over 100 centres nationally.

Busy Bees Early Learning is the second largest provider, operating 103 services nationally except for the Northern Territory and Tasmania.

It is majority owned by a Canadian teachers’ pension fund and Singaporean investment company Temasek.

Busy Bees recorded $493.5m in revenue in 2023-24 with a loss of $4.6m.

Only About Children was acquired by US-based Bright Horizons Family Solutions for $450m in 2022.

It operates at least 80 services across NSW, Victoria and Queensland, recording $227.5m in revenue with a loss of $32.5m in 2023-24.

Only About Children is owned by a US company.

Sparrow Early Learning was majority owned by Hong Kong investment company Fullshare which acquired 90 per cent of Sparrow’s shares in a 2016 deal worth $66.5m.

By the start of this year, that share had dropped to just under 20 per cent, making Fullshare a minority foreign owner of Sparrow Early Learning.

It operates 58 services in Queensland, Victoria and Western Australia.

Documents seen by this masthead revealed the Montessori Academy, which operates 58 services in NSW, Victoria and ACT, was majority foreign-owned by Hong Kong investment group Greentown Education Group until late 2024.

The Hong Kong group still holds a 40 per cent stake in the company, but a recent deal struck will see the business return to the original Assaf family owners.

Millions in taxpayer funds

These foreign-owned providers are still eligible for generous government subsidies and grants.

All approved childcare providers receive the child care subsidy (CCS) to make childcare more affordable for Australian families.

In 2024-25, the federal government allocated $14.5bn for spending on the CCS and a further $16.9bn for the next financial year.

These providers receive a number of government grants, including the early childhood education and care worker retention payment (ECEC WRP).

The ECEC WRP provides funding to support a wage increase for all eligible ECEC workers from December 2024.

According to government website GrantConnect, US-owned Only About Children will receive a whopping $32m ECEC WRP grant from March to next November.

Sparrow Early Learning will receive nearly $10m in grants from July to support a wage increase for early childhood educators.

Canadian and Singaporean majority-owned Busy Bees will receive $4.3m of the same grant from April.

The Montessori Academy will receive $14.6m in the ECEC WRP grant from March.

Quality of care

These providers operate 482 private for-profit services in every state and territory except the NT and Tasmania.

Ms Hodgins-May told this masthead she was concerned about transparency and accountability in the industry and called for a public register of foreign-owned providers.

“We’re calling for stronger oversight, transparency and accountability of the entire for-profit childcare industry, which right now, sees private equity firms and investors both in Australia and offshore use early education as a business opportunity rather than essential public service,” she said.

Greens Senator Steph Hodgins-May identified four foreign owned providers at Senate Estimates. Picture: NewsWire / Martin Ollman

“The lack of government regulations has allowed major for-profit childcare companies to rake in billions in profit, while our children and parents have to deal with rising out-of-pocket costs and lower safety and quality standards.

“With the childcare crisis getting worse by the day, we’re alarmed the government doesn’t maintain strict oversight and regulations for childcare providers.”

Early Childhood Education Minister Jess Walsh said her government was committed to keeping children safe no matter which centre they attended.

“The vast majority of services, including private providers, deliver safe, high-quality early learning,” Ms Walsh said.

“For-profit providers deliver 67 per cent of early childhood education and care. Of those, 90 per cent meet or exceed the standards.

“For those who don’t, our message is very clear — lift your game or leave the sector.”

Of these foreign-owned centres with quality ratings, only five per cent do not meet NQS — far below the national average of 10 per cent of private-for-profit centres.

All five providers were contacted for comment, but four did not respond by the deadline.

Childcare is a multi-billion industry in Australia with a range of profit and not-for-profit providers.

A spokeswoman for Sparrow Early Learning said partial foreign ownership did not affect the quality of care its services provide.

“All board and daily operational decisions are made by our Australian based management team,” the spokeswoman said.

“Our organisation is proudly Australian-operated, with local ownership, leadership and educators delivering high-quality early learning programs in accordance with Australia’s National Quality Framework.

“Our focus remains on fostering strong community connections and creating safe, nurturing environments where every child can thrive.”

Originally published as Full list of 400+ foreign-owned childcare centres across the country