As families seek more child care options, Tierra Encantada eyes growth with $38M investment
Summary
A recent survey by the Minneapolis Fed and First Childrens Finance found more than 700 open jobs resulting in more than 2,000 unavailable child care slots statewide.Other states and metros are facing similar challenges.To help fill the gap, Tierra Encantada, a growing Spanish immersion child-care company headquartered in Eagan, is planning to use fresh capital from a Pennsylvania investment firm to deepen its ability to provide early childhood education and options for families raising bilingual children in Minnesota and across the U.S.To fuel a nationwide expansion, Tierra Encantada founder and chief executive Kristen Denzer recently secured $38 million in a growth equity investment from Pennsylvania-based Susquehanna Growth Equity (SGE). Taking them on as a minority investor really is going to allow us to increase both scale and quality," Denzer said.Tierra Encantada has locations in Minnesota, Illinois, Texas and Virginia. "Were growing through both franchise and corporate growth," Denzer said.Denzer, the 2022 Small Business Administrations Minnesota Small Business Person of the Year, said that the capital will help Tierra Encantada invest in technology, training and innovation as it builds the business.Tierra Encantada does not teach Spanish but its early education classes are taught in Spanish. All of its locations offer global meals from a licensed commercial kitchen.Founded in 2013, the investment marks the first institutional capital Tierra Encantada has secured. "Tierra Encantada is the clear leader in Spanish immersion early education, and we believe their differentiated model represents the future of childcare," said Kyle Squillario, managing director of SGE, in a statement.The private equity firm is also an investor in Minneapolis-based Field Nation, a platform which connects companies with IT technicians.