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Private equity's growing role in UK children's care homes raises alarm over profit-driven models

By

Jessica Murray

5d ago· 8 min readenInsight

Summary

This article investigates the growing involvement of private equity firms in UK public services, focusing on Compass Community — a private equity-backed company running children's homes, fostering services, and special educational needs (Send) schooling. Sold from Graphite Capital to Cap10 in May 2024, the firm exemplifies a model where companies are acquired, assets maximized, and sold for profit. Experts raise alarms about the consequences of treating vulnerable children as financial assets, with concerns over care quality, staff retention, and the prioritization of profit over welfare in essential public services.

Source

bskyPrivate equity's growing role in UK children's care homes raises alarm over profit-driven modelstheguardian.com

Key quotes

· 3 pulled
Treating children like cattle
Private equity companies have slowly and invisibly increased their involvement in public services
a well-established model to buy up companies, maximise their assets and sell them on for a profit
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Experts raise alarm as firms aiming to maximise assets and sell for profit become more involved in vital public services

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