Day nursery operator Happy Days has received £3.7 million from ISIS, allowing minority equity holder South West Ventures Fund to realise its holdings, as it looks to expand organically and through acquisitions.

On the back of the deal ISIS is set to support the roll out of four new sites in the Exeter and Bristol area.

Founded in 1991 by Robin and Sarah Karkeek, Newquay-headquartered Happy Days has 16 sites in the South West of England catering for children between three months and five years.

Robin Karkeek, comments, ‘The business is now ready and positioned to expand, and the positive involvement of ISIS provides the necessary support and experience to help management achieve its ambitions.’

Baronsmead VCTs’ first deal of 2012 was the sale of TVC Group to The Economist Group, following a four year involvement.

Paul Morris, director at ISIS Equity Partners, says the Happy Day’s team has built up a ‘high quality’ business which is well positioned for rapid growth in the sector.

‘ISIS will be a supportive partner offering both experience and capital to support the ambitious plans of the team,’ Morris adds.

Experience in the sector for ISIS has come in the form of an investment in kidsunlimited, which it supported back in 2001. The business was sold by ISIS in 2008 in a deal worth £45 million, a figure up £8 million on its 2001 turnover.