PE OWNED — ON WATCH
Cadence Education
Includes Cadence Academy
childcare · Scottsdale, AZ
- PE Firm
- Apax Partners →
- Year Acquired
- 2020
Tuition goes up every six months. Teacher pay stays flat. The PE owners keep changing, but the pattern never does.
Too Soon to Tell
- Apax Partners acquired Cadence Education from Morgan Stanley Capital Partners in 2020 — at least the third PE ownership change for the childcare chain, which keeps getting flipped between firms
- Teachers at a Washington state location went on strike in August 2023 over stagnant wages — experienced staff were making $16/hour while tuition increased every six months
- Despite regular tuition hikes, Cadence did not confirm whether any of the increased revenue was shared with the teachers actually caring for children
- The PE ownership carousel means long-term investment in quality is always secondary to positioning the company for the next sale
- Senator Merkley launched a formal investigation in March 2026 into PE ownership of childcare — targeting KinderCare and Learning Care Group, but the regulatory spotlight is on every PE-backed childcare operator including Cadence
- Still acquiring: bought East Cobb Prep (Atlanta) in January 2026 and Precious Angel's (Rhode Island) in February 2026 — growing the portfolio while the Senate investigates the business model
Early Signs
- Parents face tuition increases every six months, with no visible improvement in staffing levels or program quality — the money goes up to ownership, not into the classrooms
- Teachers report buying classroom materials out of their own pockets because the budget doesn't cover basics — the PE owners raise prices but won't fund supplies
- Staff turnover driven by low pay means children constantly lose the caregivers they've bonded with — in early childhood education, relationship stability is everything
- Multiple PE ownership changes create instability for families who enrolled their children expecting consistency and instead got a revolving door of corporate strategies
- A U.S. Senator is now formally investigating whether PE-owned childcare prioritizes returns over children's safety — the same pattern parents at Cadence locations have been reporting for years
Sources
- 'The End User Is a Dollar Sign, It's Not a Child' — Early Learning Nation (republished by The 74)(2024-04-01)
- Early-learning employees strike over low, stagnant wages — The JOLT News Organization(2023-08-01)
- Funds advised by Apax Partners to acquire Cadence Education — Apax Partners(2020-02-12)
- Merkley Launches Investigation Into PE Ownership of Child Care Centers — U.S. Senate(2026-03-24)
- SchoolWise Partners Facilitates Sale of Atlanta-Area Center to Cadence Education — PR Newswire(2026-01-13)