Tierra Encantada, a fast-growing Spanish immersion childcare and preschool chain, has received a $38 million investment to bolster the firm's aggressive growth plans, according to an announcement Tuesday.
The investment is from Susquehanna Growth Equity (SGE), an entrepreneur-centric growth equity fund based in Bala Cynwd, Pennsylvania. The funding will be used to support Tierra Encantada’s plan to open new franchise-owned learning centers. SGE also plans to leverage its own experience in the education sector to help Tierra Encantada achieve its goal.
The Minneapolis-based chain provides Spanish immersion childcare to children ages 6 weeks through 6 years old.
“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.
Tierra Encantada was founded in 2013 by CEO Kristen Denzer, a Business Journal 2023 40 under 40 honoree. Tierra Encantada has become a fast-growing franchise, planting locations in four states with at least 20 franchise units under development. Today, Tierra Encantada lists eight centers around the Twin Cities, including its upcoming location in St. Louis Park.
Its revenue has reached $22 million after growing over 62% from 2019 to 2021, making it a 2022 Fast 50 winner. Up until this point, the company has never received investments from an institutional investment firm.
“We are on a strong growth trajectory thanks to our amazing team, and we are thrilled to have found the ideal, founder-friendly partner in SGE,” said Denzer in a statement. “Their patient capital and operational resources will be incredibly valuable during this next stage of growth. This investment validates the strength of the brand, allowing us to deepen our proven ability to provide a premier experience for families and franchisees, while accelerating our nationwide expansion.”
