18 December 2020

Ageing populations: the golden investment case from an increasingly ‘silver’ world

by Ian Oxley, Partner, Silverfleet

In the last decade, Silverfleet has zeroed in on five ‘megatrends’ driving financial markets over the long-term. These include increasing urbanisation, ageing populations, resource scarcity, growth in technology and growth in regulation.

In the second instalment of a five-article series for Real Deals, Ian Oxley, Origination Partner at Silverfleet, homes in on ‘ageing populations’, and the investment opportunities therein.

Despite Covid-19’s disproportionate impact on the elderly, the world’s population is continuing to age. Underpinned by advances in healthcare and rising levels of wealth, the number of individuals over 60 years old is projected to double by 2050, reaching an estimated two billion.

Not only will this have significant consequences on the world’s societal dynamics, but it will also have a considerable impact on global economies. For the first time in history, the population of those aged over 65 will grow faster than the working-age population in OECD countries. In Europe alone, the baseline value of the continent’s ‘Silver Economy’ is predicated to reach a staggering €5.7 trillion by 2050.

This will drive a strong need for innovation and targeted products and service propositions and presents with it a gold mine of opportunity for investors. In his article, Ian highlights certain sub-sectors which will benefit from the world’s exponential ageing, including diagnostics, fertility treatments, biomaterials, travel, wellness, assistive technologies and living, and healthcare – the latter of which will only grow more attractive in the wake of the pandemic.

Also referenced is a European Commission study conducted by Technopolis and Oxford Economics, which estimated a baseline value of €3.7 trillion for Europe's ‘Silver Economy’ in 2015. That same report predicted that this market would expand by approximately 5% per year up to 2025, reaching €5.7 trillion, which would be the third largest economy in the world, behind only the USA and China.

With clear opportunities for investors to support companies catering to the 65+ market, ageing populations will remain a core tenet of Silverfleet’s investment thesis. Having successfully invested in CARE Fertility, a leading chain of fertility clinics across the UK, and STAXS, a Benelux-based distributor of medical consumables, in the last year alone, Silverfleet is well-positioned to further capitalise on this trend.

Read the full piece here.

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