Bain faces court action from Only About Children founder Brendan McAssey

Bain Capital purchased Only About Children in 2016

If Bain Capital did not have enough on its plate with its pursuit of Virgin Australia and the potential selldown of debt by lenders in its childcare business Camp Australia, it now has to fend off legal action over its other local childcare operation, Only About Children.

A case is being brought to the Supreme Court this week by Only About Children’s founder and former CEO Brendan McAssey, who remains a minority shareholder.

The case relates to Mr McAssey’s claims that he failed to receive compensation from Bain for performance hurdles he claimed he had met.

However, Bain has denied the allegations and it is believed that its side of the story is that he did not meet requirements to receive the payment.

Mr McAssey no longer has an executive role at Only About Children and is a minority shareholder without authority over the operating business.

Bain Capital purchased Only About Children in 2016 from Mr McAssey, who at the time was the CEO. Bain has since bolstered the business, which operates at more than 70 locations, with the acquisition of Little Learning in 2018.

The price paid for Only About Children was never disclosed, but it was understood to have debt worth about $218m, according to accounts for the 2019 financial year.

Debt was refinanced in 2018 through Goldman Sachs.

Mr McAssey started the business in 2002 after a long career in investment banking. He sold childcare investments to Eddy Groves from ABC Learning before buying some centres back when the business collapsed during the global financial crisis. He then took the business upmarket.

Distressed debt investors are circling loans that could be for sale in Only About Children and Camp Australia.