F
ortec, a national developer focused on early‑childhood education, has partnered with Equiturn to launch a $100 million fund that will institutionalize the sector. The fund will target net‑lease properties—primarily large centers operated by chains such as KinderCare and The Learning Experience—where tenants shoulder taxes, insurance and maintenance. By doing so, Fortec aims to transform a fragmented, local market into a scalable asset class comparable to senior housing or medical offices.

    The U.S. child‑care market, valued at $65.2 billion in 2023, is projected to reach $109.9 billion by 2033. Demand is driven by parents returning to office, advances in educational technology, and increased public funding, especially for single and working mothers. Yet only 8.7 million of the 14.7 million children under six are enrolled in formal programs, leaving a 6 million‑child shortfall and waitlists averaging six months. Fifty‑one percent of U.S. regions are “child‑care deserts,” where supply lags demand by a factor of three.

    Since late 2024, the inventory of early‑education properties for sale has risen 14 % to 158 units, with a 12 % increase in assets offering more than ten years of remaining lease term—an attractive feature for banks and investors. Net‑lease structures provide predictable, bond‑like income streams and double‑digit profit margins once occupancy stabilizes, making them an inflation hedge in today’s environment.

    Fortec’s new fund will expand its footprint beyond the $230 million of transactions completed across 13 states in the past five years. Equiturn will lead fundraising and outreach, targeting single‑family offices, private‑equity funds, family offices, institutional investors and large public companies. The fund’s structure will align with the risk and return metrics that institutional investors demand, while capitalizing on the sector’s resilience and essential‑infrastructure status.

    “Many large institutions are beginning to look at early education on the operational side,” said Fortec chairman Pablo Barreiro. “To attract them, we need a product that matches their financial expectations and risk appetite.”

    The partnership signals a shift toward treating early‑education real estate as a distinct, institutional asset class, offering stable, long‑term returns and a growing demand that outpaces supply.