Private equity firm GI Partners has bought Advanced Childcare, a childcare outsourcing business with 30 residential care homes, for £28m.

GI said it planned to grow Advanced Childcare into “a multi-regional, industry-leading childcare services business”.

GI, which is headed in Europe by aAIM founder Mark Tagliaferri, has already made several healthcare investments in the UK.

GI already owns the Cambian Group, which it has built up to become the UK’s largest provider of specialist services in education, mental health rehabilitation and learning disabilities.

Alfred Foglio, managing director of GI Partners, noted, “Advanced Childcare has pioneered the trend of managing children’s care services on behalf of budget constrained local authorities with residential childcare being one of the few services that the government acknowledges is less expensive if provided by the private sector.

“GI Partners believes that ACL offers an excellent opportunity from which to build a multi-regional childcare services platform due it its combination of best-in class management team, operational excellence and achievement of the highest quality ratings in the industry.

“More often than not, local government authorities are choosing to close down older or inadequately-rated facilities and use a competitive tendering process to select proven providers who are willing to invest in new buildings and high-quality care models. We believe that ACL can offer a compelling solution to local authority customers in this environment.”