Quadrant locks in refi for Junior Adventure Group
Quadrant Private Equity has ruled off a refinance for its outside school hours care provider Junior Adventure Group (JAG).
Quadrant took a majority stake in after school care provider Junior Adventures Group in 2018. Louie Douvis
Street Talk understands existing lender Barings came in for a larger slice of the debt, which was due to expire in June 2024. The existing lender group also included Nomura, Challenger and HPS Partners.
Sources said the refi process, which was disclosed in JAG’s financial year 2023 accounts, was done at similar terms to the existing facility and should see the company through another few years.
Barings did not respond to Street Talk’s request for comment.
Quadrant first bought into JAG in 2018 via Private Equity No. 6, paying more than $100 million for a majority stake in the company and joining Advent Partners, its founders and management team on the share register.
The company provides services like after-school care and holiday programs to over 400 schools across the country under two brands; OSHClub and Helping Hands. Globally, it looks after more than 90,000 children across Australia, New Zealand, Ireland and the UK.
At the time of acquisition, managing partner Marcus Darville told Street Talk he was attracted to JAG’s high-growth industry and its quality rankings as assessed by the industry regulator, which put the business well ahead of its rivals. Since, Quadrant has sought to expand its presence in the UK and Ireland and broaden its programs beyond childcare to education and development. The private equity firm has appointed a new Australian chief executive in ex-YMCA Australia executive Melinda Crole.
Accounts registered with the corporate regulator show the holding company declared a $30 million before tax loss in financial year 2023. This figure includes shareholder loan interest charges. It made $210 million at the revenue line, up from $174 million a year prior, and made a handful of bolt-on acquisitions in the UK and Ireland.
JAG’s external borrowing facility sat at $155 million before the refi and had an interest rate of 8.8 per cent in FY23. The company said it was in “active discussions with lenders to extend the facility to June 2027”.
Sources said Quadrant will hold on to the asset in the short term, seeking to grow its Northern Hemisphere footprint before looking for the exit.
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