Spotlight on Jarra’s New National Childcare Fund

July 23, 2025

little boy playing with toys in a childcare centre

Jarra is reshaping Australia’s early education investment landscape through the launch of Jarra Childcare Trust.

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Jarra is reshaping Australia’s early education investment landscape through the innovative, dual investment strategy behind Jarra Childcare Trust.

Jarra Childcare Trust (the Fund) combines predictable income generated from direct ownership of childcare real estate with the growth potential of operating businesses. Presenting strong target returns for wholesale investors, a minimum of 50% of capital will be allocated to income-generating childcare properties, with the remaining to be invested in Early Learning Collective, a new national childcare business.

Investment Snapshot

MetricDetail
Target capital raise$50 million
Target IRR*15% p.a.
Target distributions*8% (from year two)
Capital allocation50% real estate / 50% operating cash flow
Investment term5 years
Exit strategyIPO on ASX (primary), trade sale (secondary)
Geographic exposureVIC, NSW, QLD, WA
Request Information MemorandumClick here to request

Industry Expertise and Fund Structure

Michael Cameron, Jarra’s Commercial Director explains that the Fund leverages decades of childcare property and operating expertise.  “Jarra has delivered over 30 childcare developments and 11 childcare business investments to date, Jarra Childcare Trust is the evolution of our experience over the last 6 years.”  Michael went on to explain that “the Funds operational partner, Early Learning Management (ELM), appointed to manage the rollout and operations of Early Learning Collective, have over 3 decades of specialist childcare management experience, and have managed more than 450 childcare centres nationally with an average occupancy rate of 86%.” As leaders in the childcare sector, this combination ensures exceptional site acquisition, development, operational rollout, the highest levels of care, ongoing performance and reporting.

In addition to the extensive industry experience behind the Fund, Michael added that “Jarra Childcare Trust’s structure aligns investors, Jarra and ELM around shared success, with each owning 1/3 of Early Learning Collective.  This will ensure collaboration and focus across both operational excellence and financial performance.”

Essential, Government Backed Industry

Australia’s childcare sector sits at the intersection of social need and economic growth. With more than half of all children aged 0–5 attending early learning programs and unwavering government funding, including $14.5 billion allocated in 2024-25 plus a further $5 billion commitment in the FY25-26 budget, childcare has emerged as essential infrastructure rather than a discretionary service.  Rising female workforce participation, later retirements and higher living costs are reinforcing long-term demand across urban and regional Australia.

Jarra Childcare Trust has secured a number of operating businesses and childcare properties to form a well-diversified portfolio of seed assets. Future acquisitions will focus on assets that enhance JCT’s scale and geographic reach, with priority given to supporting the expansion and roll out of Early Learning Collective.

Jarra Childcare Trust provides wholesale investors with a rare opportunity to access the strong fundamentals of the Australian childcare sector, across both property and operating businesses.  To download the Information Memorandum and apply to invest, click here.

This blog is for information purposes only and does not form financial advice or investment recommendations.

*Fund performance is subject to risks and target returns are indicative, based on assumptions and are not guaranteed. For more information, please refer to the individual Fund Information Memorandums. This information has been prepared without taking into account your individual circumstances, objectives, financial or taxation situation. You are advised to seek your own individual investment advice from a relevant tax and investment professional before making any investment decisions.