- ICPEducare has secured a loan from OakNorth to pursue a targeted “buy and build” of high-quality Early Years schools;
- This is the fourth time OakNorth has supported Innervation Capital and the third time it has invested with the firm in Early Years;
- OakNorth previously backed ICP Nurseries, a nurseries “buy and build” group focused on the London and South East region in 2017; and Cresswell Nurseries, a freehold nurseries “buy and build” group in 2019; which were then combined into ICP Education and sold to Oakley Capital IV in June 2021.
OakNorth – the digital bank for entrepreneurs, by entrepreneurs – has provided growth capital to Innervation Capital Partners, the sector-focused, theme-driven investor to support the “buy and build” strategy of its newly-launched Early Years provider, ICPEducare.
Innervation Capital focuses on investing in platform companies in essential services sectors such as education. It then works closely with the management team to accelerate growth through a mixture of organic and inorganic growth.
In 2017, OakNorth provided support to ICP Nurseries, and in 2019, did the same with Cresswell Nurseries – both were Innervation Capital-backed businesses. ICP Nurseries and Cresswell Nurseries were combined to form ICP Education in December 2020. Under the leadership of CEO, Dominic Harrison, ICP Education, which operated 45 sites and served nearly 6,000 children, was sold to Oakley Capital IV, and it now intends to replicate that success in Early Years schools in its recently-launched entity, ICPEducare.
ICPEducare initiated its “buy and build” strategy in February 2024 with the £6m acquisition of Phoenix Park Nurseries, and invested an additional £4m to acquire Shotley Bridge and Poplar’s Blossoms. It is now raising £13m for the acquisition of Oxfordshire Nurseries and the refinancing of its shareholder loans. ICPEducare has £10m of equity and this new facility provides an accordion of a further £17m for a pipeline of acquisitions in exclusivity or already under negotiation.
Commenting on the transaction, Dominic Harrison, Executive Chair of ICPEducare, said: “Our aim is to create one of the UK’s leading Early Years providers in what is a £12bn fragmented market, serving nearly 1.6m children from 9 months to five years old. We expect to complete another three acquisitions this year with many more to come, so are delighted to have the support of OakNorth once again. The bespoke facility the team designed for us played a vital role in the incredible growth and success of ICP Education, which culminated in its sale to Oakley Capital.”
Stuart Blair, Director of Debt Finance at OakNorth, commented: “Dominic has been instrumental to the standout performance of ICPEducare since its launch 12 months ago, so we jumped at the opportunity to work with him and Innervation Capital again. Between them, Dominic and Innervation Capital have a proven track record and experience from over 50 deals in the education sector, so understand the unique dynamics of it, and will no doubt be able to build ICPEducare into a success story that replicates ICP Education’s storied achievements.”
ENDS
Notes to editors
Launched in September 2015 and founded by entrepreneurs, OakNorth is a digital bank focused on serving and empowering the lower mid-market (businesses with £1m-£100m in turnover), that are seeking to scale but are routinely underserved or overlooked by traditional banks.
To date, it has provided c.£12.5bn to these businesses across a wide range of sectors, achieving performance metrics that place it amongst the top 1% of commercial banks globally. Its loans have directly contributed to the creation of 56,000 jobs, and over 34,000 new homes across the UK and the US – the majority of which are affordable and social housing.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit www.oaknorth.co.uk for more information.
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