It comes after residential care home and education provider Sedgemoor, bought by private equity firm ECI in 2000, went into administration (CYP Now, 3-9 October). The Adolescent and Children's Trust (Tact) is warning there is a danger something similar could happen in the fostering sector.
"The fact that more than a third of fostered children in the independent sector are now with agencies owned by private equity companies should be of great concern," said Tact's chief executive Kevin Williams, who is also spokesman for the Fostering Through Social Enterprise Consortium. "Private equity's primary motive is to maximise the return on their investment. Sedgemoor is a reminder that where the profit motive is paramount the consequences can be disastrous for children and staff."
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