Spire Capital Exits Rainbow Early Education in Sale to Quad-C Management

NEW YORK, July 12, 2016 – Spire Capital Partners (“Spire Capital”), a private equity firm specializing in investments across the business services, information services, media, education and communications sectors, closed on the sale of Rainbow Early Education Holding, LLC (“Rainbow” or the “Company”), a leading provider of early education services, to Quad-C Management, a private equity firm based in Charlottesville, VA.

Spire Capital has significant experience investing in the education vertical and partnering with proven management teams.  Spire Capital initially partnered with Patrick Fenton, Rainbow’s Founder & CEO, in 2010 to invest in a platform providing a differentiated early education experience for children. Spire Capital executed on this thesis with its investment in Rainbow and Rainbow’s management team led the expansion geographically by building new schools and acquiring other leading schools in contiguous regions.  The Company opened or acquired 91 schools during the six-year partnership, more than tripling the school count while growing revenue by over 400%. 

“Patrick Fenton, management and all of the Rainbow team exhibited exceptional operating skills and built a unique curriculum and company culture to educate young children today.  The identification and execution of this buy and build investment theme created significant value for all stakeholders and the Company continues to be well positioned to continue its expansion as a premier provider in the sector” commented David Schaible, a partner at Spire Capital.

“I am proud of our Rainbow team and that we have successfully positioned Rainbow as a leading early education company serving individual families, blue-chip corporate partners and their communities,” said Patrick Fenton, the CEO of Rainbow.  “Spire Capital has been an exceptional partner providing invaluable insight working alongside our team to further our business development, marketing, and technology initiatives during our rapid growth.  We look forward to continuing the next chapter of the Company in partnership with Quad-C.”

Robert W. Baird & Company acted as exclusive financial advisor to Spire Capital and Rainbow, while Dentons US LLP served as legal counsel.  White & Case LLP acted as legal advisor to Quad-C Management.

About Rainbow Early Education Holdings

Rainbow is a leading early education provider serving over 10,500 students and operates 121 schools across twelve states. Rainbow provides a differentiated early education offering, including state-of-the-art schools that offer proven, all-inclusive early education curriculum that is enhanced with enrichment programs to facilitate exploration of music, dance, art, athletics, fitness, interaction and community. Rainbow serves families and blue-chip enterprises including corporations, hospitals and universities. Rainbow is headquartered in Troy, Michigan.  To learn more about Rainbow’s offerings please, visit us at www.rainbowccc.com or www.facebook.com/rainbowccc.

About Spire Capital Partner

Founded in 2000, Spire Capital is an active and experienced private equity firm with an investment focus on lead and control investments in companies within the business services, information services, media, education and communications sectors. Spire Capital leads buyout investments in its areas of expertise and believes its deep industry experience and network of relationships are invaluable in helping its portfolio companies to grow and create value. Spire Capital is investing out of its third fund and has managed over $900 million in private equity commitments since its founding. For more information, please visit www.spirecapital.com.

Spire Capital Disclosure: Spire Capital is a New York based investment advisor registered with the Securities and Exchange Commission under the Investment Act of 1940. Market conditions can vary over time and past fund performance does not guarantee future fund results.