AN Edinburgh-based nursery group is set to launch a drive for acquisitions with a war chest of around £6.5 million, which it expects will be part-funded by the parents of children who attend its centres.

Bertram Nursery Group says it has developed a healthy pipeline of potential takeovers that the company expects to complete to help maintain its rapid growth.

Founded by entrepreneur Graeme Scott in 2002, Bertram has used acquisitions to build a portfolio of 37 nurseries in Scotland and North West England. These offer around 3,000 places making it the eighth largest in the UK on that measure.

Mr Scott said the company's success has been based on allowing the nurseries it buys to retain their individual identities while using its scale to provide additional services such as foreign language classes.

He added:"I now hope that our track record will inspire investors - and particularly the parents and grandparents of the children already in our care - to get involved in a successful and growing operation."

The group expects to raise up to £3m funding by selling bonds on the Crowdcube funding platform.

Parents and grandparents of children attending the group's nurseries will get the first chance to buy the so-called Bertram Bonds.

The group said people buying the bonds will be able to invest from £500 for a four year minimum term.

The Bond will pay out a fixed rate of return of eight per cent per annum, with a five per cent discount off all childcare fees at any Bertram nursery for the eldest child or grandchild of any bondholder. The group said this will increase to a 10 per cent discount should the bondholder invest at least £10,000 of Bertram Bonds.

Bertram Group raised £3.5m debt from high net worth investors last year.

It expects to invest £6.5m acquiring a number of nurseries and upgrading existing sites and facilities to increase capacity.

The group bought the four-strong Oranges and Lemons group in Dundee last year.