Jarra Childcare Trust

The Fund leverages a hybrid investment strategy to create a diverse portfolio, combining direct real estate ownership with co-investments in a national childcare business.

The dual investment strategy enhances risk-adjusted returns by combining the relatively stable, income-generating profile of childcare real estate with the higher-growth potential of operating childcare businesses.

The Fund’s investment strategy is informed by Jarra’s strong track record in the Australian childcare sector.  Having delivered more than 30 childcare centres nationally, our experience extends beyond development and into childcare operations, having successfully rolled out a similar hybrid investment strategy over 6 years, prior to establishing this Fund.

A key partner in delivering the Fund’s strategy is Early Learning Management (ELM), a leading national childcare operator with over 35 years experience managing more than 450 centres. ELM brings operational expertise, strong governance and a track record of improving centre performance at scale.

Over the past decade, childcare enrolment has surged by more than 30%, driven by rising female workforce participation, delayed retirement, population growth (with the 0-5 age group increasing by 3.3% annually since 2012), and the increasing cost of living.

These factors have contributed to higher childcare attendance rates, with 50% of Australia’s 0-5 population currently enrolled in formal childcare.

Australia’s childcare sector has evolved into a critical part of the nation’s social and economic infrastructure, recognised as critical infrastructure by both state and federal governments.

During the COVID-19 pandemic, the childcare sector was the first industry to receive direct government financial support, and recent government budget announcements reaffirm continued strong financial backing for the sector, reinforcing its long-term stability.

The Fund’s co-investment structure fosters strong alignment between the Fund, ELM and Jarra by ensuring that all parties have shared financial and strategic interest in the success of the Fund’s business investments (Early Learning Collective).

Stakeholders are incentivised to drive operational excellence, long-term growth, and quality outcomes, creating a unified approach to value creation.

Investing in early childhood education strengthens communities and drives long-term economic growth. Quality childcare services provide essential support for working families, increase workforce participation, and contributing to the development of future generations.

By ensuring access to early education, the Fund will contribute to social stability, improving educational outcomes, and enhancing productivity across Australia.