A thinktank investigation finds private equity and other institutional investors own or partially own 11 of England’s 20 largest children’s care providers, including fostering agencies and children’s homes, raising concerns about profiteering from vulnerable care services.

National Fostering Group, the UK’s largest independent fostering provider, is owned by Stirling Square Capital Partners and has paid over £116 million in interest on investor loans since 2020, plus £71 million in interest on preference shares; BSN Social Care, majority-owned by MML Capital Partners, has paid over £7 million in interest on shareholder loans since 2020.

Policy context notes the CMA’s findings that big private providers in children’s social care show higher profits and debt, with the UK government pledging to curb profiteering through oversight and potential profit caps, while Wales aims to end for-profit provision by 2030.

Stakeholders call for insourcing and public sector control, with unions and reform groups urging a ban on profit-making in children’s care and direct funding of essential services to ensure taxpayer money benefits care rather than shareholders.

Common Wealth proposes a temporary pause on for-profit providers, a full audit of illegal children’s homes, and the use of compulsory purchase orders to bring substandard providers into public hands.

The analysis shows that at least one in three fostering agency placements and one in five children’s home placements are run by firms backed by institutional finance, highlighting widespread private ownership across the sector.

The study estimates at least £205 million has been paid to shareholders and investors via shareholder loans and interest since 2020, with the four largest fostering companies employing high-interest loans (8–14%), enabling tax shields and wealth extraction for investors.