It seems like many agencies are expanding into the popular & exploding children's/YA market. Here's an update on the latest agency forming an internal children's division.
"Folio Literary Management is expanding its presence in the children’s book market with the launch of Folio Jr., which will represent creators of middle-grade and young adult novels, as well as “selective” picture books. Two new hires at the agency—Marcy Posner and Emily van Beek—as well as Folio’s Molly Jaffa will represent clients for the division, though Folio Jr. will also encompass other children’s/YA authors at Folio, including those represented by other agents." (Source and more information: Publishers Weekly).