Foresight injects growth capital into Peekaboo

Kenny Wastell
13 April 2016

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Small-cap investor Foresight, which typically makes equity investments of up to ТЃ5m, has invested an undisclosed amount of growth capital into UK nursery business Peekaboo.

The fresh capital will enable Peekaboo to make bolt-on acquisitions, in addition to opening new locations within the UK. Upon completion of the deal, Peekaboo will appoint Denise Burke, formerly CEO of Dutch nursery chain Small-steps, as chairperson.

The deal marks Foresight's second investment of 2016. In January, the GP invested £650,000 in portfolio company AppInstitute through its Foresight Nottingham Fund.

The early childcare sector in the UK remains relatively fragmented, though it has seen some consolidation from private-equity-backed companies in recent years.

In April 2014, Electra Partners' portfolio company Treetops Nurseries acquired a competitor in the south-east of England, bringing its total number of nurseries to 49. A few months later, Phoenix Equity Partners invested in Just Childcare, which most recently bolted on First Class Child Care to bring its total number of nurseries to 31.

Company
Founded in 2009 and headquartered in Poulton-Le-Fylde, Lancashire, Peekaboo currently operates four nurseries in the north-west of England. The business is in the process of opening its fifth site.

People
Foresight – Lizzie Ryan (investment manager).
Peekaboo – Sarah Bellamy (founder, managing director).

Advisers
Equity – Browne Jacobson (legal); Mazars (financial due diligence); Reflections (operational due diligence).