Bain's arrival puts further pressure on G8

Totus Capital

Totus Capital

We have been following developments at Childcare operator G8 for some time (VIEW LINK). The arrival of private equity player Bain in the Australian childcare market (as reported by the AFR) puts further pressure on G8. Bain has acquired an operator of high fee “premium” centres and according to press reports (VIEW LINK) has plans to roll the model out nationally. This adds to an already well supplied market and targets the high fee premium market that G8 has made a priority of targeting in the past. G8 has a geared balance sheet and a high degree of operating leverage given the bulk of its running costs are fixed (rent and wages). The groups failure to obtain bank debt may point to deeper issues and we would not be surprised to see them tap the market for further equity.

1 topic

1 stock mentioned

Totus Capital
Australian Equities
Totus Capital

Totus Capital is a Sydney based absolute return manager founded in 2012. The Totus Alpha Fund uses a concentrated long short investment strategy focused on developed market equities, commodities and related derivative instruments.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment