Bear Cave Founder Calls for Broader Scrutiny of Private Equity in Daycare Industry
The founder of Bear Cave, Edwin Dorsey, has stated that increased scrutiny on private equity's role in the U.S. child care industry is 'long overdue.' He urged lawmakers to focus not only on financial practices but also on safety issues at daycare centers backed by private equity firms. A recent academic study found that while private equity may not be the main cause of rising childcare costs, 75% of such facilities are concentrated in just 5% of U.S. counties—often where child care is scarce and staffing regulations are lax. This has raised concerns about accessibility and safety for families. KinderCare Learning Companies, a major player in the sector, faced allegations from Bear Cave regarding safety failures and billing practices involving government subsidies. The company disputes these claims but has seen its stock price drop following reports.
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