Anecdotal evidence suggests that private equity (PE) has become increasingly prominent in the U.S. child care market. Combining multiple proprietary datasets, we provide the first systematic analysis of PE ownership trends, characteristics, and locational preferences. The fraction of center-based child care teachers working at PE-owned providers has grown nationally from less than 1% in 1997 to 10% today, with considerable between- and within-state variation. PE-backed providers are larger and higher-revenue than non-PE providers. While PE-owned businesses charge higher prices than sole proprietors, they are slightly less expensive than other national chains. They are also more likely to be accredited by the National Association for the Education of Young Children, and to be in the top tier of states' quality rating systems. Geographically, we find that PE providers are more likely to operate in higher-income communities, in markets with excess demand, and in states with less stringent regulations on staffing levels and education requirements. Together, our findings suggest that PE providers tend to be located in areas where they can more easily extract rents and pursue observable signs of quality in order to attract consumers.