Private equity-backed child-care providers account for about 10% of the U.S. child-care workforce, a share that has remained near that level since 2010, according to research by Jessica Brown of the University of South Carolina and Chris Herbst of Arizona State University, reported by Vox. The providers are highly concentrated: 75% of PE-backed centers operate in just 5% of U.S. counties, especially where child care is already in short supply and in states with less stringent staffing requirements. The researchers found no evidence that private equity is the primary cause of unaffordable child care. PE-backed providers charge prices similar to other large chains and are more likely to hold their state’s top quality rating, but they are less likely to accept government subsidies, with 70% doing so compared with 78% of other large chains. The findings come as lawmakers examine private equity’s role in child care. Sen. Jeff Merkley (D-Ore.) launched a March 2026 investigation into KinderCare and Learning Care Group and their private equity owners, Partners Group and American Securities, while Rep. Anna Paulina Luna (R-Fla.) urged House leadership and the Department of Government Efficiency to withhold taxpayer funding from operators that fail to keep children safe. Bear Cave founder Edwin Dorsey said the scrutiny was overdue and should include safety issues at private equity-backed daycares. Bear Cave’s April 2025 investigation into KinderCare alleged children were left unsupervised, escapes from centers and abuse; KinderCare disputed the characterization. A June follow-up cited 103 Federal Trade Commission complaints, including allegations that families using state vouchers were billed when classrooms were closed. KinderCare reported $942.1 million in government subsidy revenue in 2024, about 35% of its $2.66 billion total revenue. Its shares recently traded around $2.59, giving the company a market capitalization of roughly $307 million, while second-quarter occupancy fell to 68.6%, enrollment declined 4% and the company said it expected to close 80 to 85 centers this year.